In this digital age, many Australians have turned their hobbies into profitable online ventures, often blurring the lines between being a blogger an online marketer, or even an influencer. But when it comes to tax time, understanding the nuances between these roles is crucial for proper tax handling. That's where Hills Accounting, your trusted local accounting firm in Derwent Park, steps in.
What's the Difference?
Bloggers and online marketers utilise the internet to share content and promote products, the key distinction lies in the nature of their activities. Bloggers typically share personal insights, experiences, or information, often monetising their platforms through ads or sponsorships. Online marketers, on the other hand, actively engage in promoting products or services, usually for a fee or commission.
Influencers may be high-profile personalities like Chris Hemsworth, who are already famous in their own right. Alternatively, they could be a regular person who has established a large audience online from scratch—people like Chloe Morello, Loui Burke and Yumika Thorne.
Tax Implications
The Australian Taxation Office (ATO) treats income from blogging and online marketing differently, making it essential to categorise activities correctly. Bloggers might generate income from ads or sponsored posts, which may be considered assessable income. Online marketers often operate businesses, selling products or earning commissions, which requires a different tax treatment. Influencers work mainly through sponsorship support.