Influencers must also be financially fit

THE RISE of social media has created an income stream for “influencers” with large followings; but experts warn against ignoring tax obligations.

Whether your social media activity constitutes a business, or is just a hobby, comes down to intent said senior tax agent at ETax.com.au, Liz Russell.

“Are you looking to make money from your social media accounts (or) blog,” Ms Russell asked. “(You can) spend a lot of money to set up your profile, take photos of beautiful locations and purchase products … this can still classify as a hobby, in which case any incidental money you make from brand partnerships and sponsorships won’t need to be declared on your tax return.

“But that also means you can’t claim any deductions for expenses you pay running the account (or) blog either.”

Posting or blogging to make a profit, with a separate bank account and registered business name in place, makes an influencer a business owner.

“You will need to declare all your income, including trips, sponsorships, products sent to you for reviews, gifts and freebies,” Ms Russell said.

TRIBE is a social media agency with influencers on its books, who make an average of $500 to $1000 a month on top of their regular incomes, according to CEO Anthony Svirskis.

“Some of our top performing creators are earning over $100,000 annually,” Mr Svirskis said.

“Micro-influencers with less than 30,000 followers earn $200$300 per post and influencers with more than 100,000 followers are earning $1000 plus.”

TRIBE provides financial guidance on how to get started as an influencer, increase earning potential and deal with tax implications.

Model and fitness blogger Lauren Vickers was using social media for extra reach, but began charging for posts once she built up her following; a reach of more than 1.4 million.

“It’s not that different to my work in freelance modelling,”

Ms Vickers said. “I’m a contractor, I’ve had an

ABN for a number of years and I invoice for my time. I keep all my work-related receipts and work with an accountant to help me through the tax process.”

The bulk of Ms Vickers’ work is based upon her personal image, meaning she can claim tax deductions on beauty costs, travel and transport, educational courses and media equipment.

“I save at least 25 per cent of everything I earn,” she said. “I have investments, I have no debt, I own my car and my apartment outright.”