The Australian Tax Office to look into social media influencers

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Social media influencers and side hustle people will come under scrutiny this tax season as the Australian Taxation Office cracks down on business amid the cost of living crisis.

From July 1, tax officials will use sophisticated data analysis and matching tools to catch taxpayers who underreport their income.

As people find new ways to make money due to rising inflation, ATO Assistant Commissioner Tim Loh said it was important that anyone supplementing their income with side gigs pay the correct amount of tax.

“While there are always new and different ways to make money, the tax obligations remain the same,” Loh said on Friday.

“Don’t fall into the trap of forgetting to include all your income thinking the ATO won’t notice.”

Side hustles include everything from earning money online through digital platforms like YouTube and Instagram to ride-sharing or food delivery services.

Loh said it’s sometimes hard to tell if a side hustle is technically a business, and not every money-making gig is considered a business.

The ATO will launch a new advertising campaign to help taxpayers better understand their obligations if their side hustle is making money.

“It doesn’t matter whether you’re running a business or simply earning additional income through a digital platform, like a website or even an app, you need to keep accurate records of your income and include it on your tax return,” Loh said.

“Every dollar dodged is a dollar that can’t be used for vital services like health care and education.”

The Sharing Economy reporting regime will kick off in July, giving the ATO access to data from multiple electronic distribution platforms.

The ATO will match this information with information provided by taxpayers in their income tax return or statement of assets to identify income that has not been included.