The Australian Taxation Office has issued a stern warning after some influencers were caught selling freebies gifted from various brands.
The ATO is targeting Aussie social media stars who participate in the trend dubbed ‘double-dipping’ in which influencers flog luxury items given to them at no cost.
“The Australian Tax Office is warning influencers they have to pay tax on the stuff they get for free and then go on to sell for money,” says finance expert Sarah Hughan on the latest episode of The West Australian’s new finance show Trading Up.
“The rules are, if you get stuff for free and then sell it, you need to pay tax on the earnings. And if it’s over $75k you also need to pay GST.
“It makes sense, corporations have a little thing called fringe benefits tax which basically means there is no such thing as a free lunch.”
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