From Engagements to Expenses: What Tax Deductions Can Influencers Claim?

We’ve addressed income; now let’s explore another important aspect of taxes: deductions. ✨

If you earn income from your social media activities, you’re likely operating a business - even if you're doing it from your spare bedroom with just a ring light and a dream. And that’s good news come tax time.

As a business, you can generally claim deductions for expenses you incur while generating that income. The essential point is that your expenses must be directly related to content creation, promoting your brand, or maintaining your online presence.

Additionally, influencers may be eligible for tax concessions and deductions not available to individuals - especially when capital or technology-related costs are involved.

Here’s what you need to know:

Deducting Depreciating Assets

Got a new camera, laptop, or lighting kit for your content creation business? You might be eligible to:

• Fully deduct the cost under the Temporary Full Expensing (TFE) rules for assets first used between 6 October 2020 and 30 June 2023. 
• Or, if you’re a Small Business Entity (SBE), you may be able to immediately deduct the full cost of each eligible asset costing less than $20,000, provided it’s first used or installed and ready for use between 1 July 2023 and 30 June 2025, under the instant asset write-off rules.

These rules help you claim the full deduction upfront, instead of spreading it over several years.

Claiming ‘Blackhole Expenditure’

Not all business-related capital expenses qualify as part of a depreciating asset or Capital Gains Tax (CGT) asset. That’s where the ‘blackhole expenditure’ rules come in.

This provision allows for a deduction of certain capital costs directly related to your business operations, such as setting up or restructuring, even if these expenses don't fit neatly into other deduction categories.

These costs are typically spread over five years, although in some cases, immediate deductions may be available, such as for business start-up expenses.

Technology Investment Boost (Bonus Deduction)

Between 29 March 2022 and 30 June 2023, eligible influencers could benefit from the Technology Investment Boost - a bonus 20% tax deduction on top of the usual claim for eligible business expenses that support utilising digital tools and technologies. So, if you spent money upgrading your digital operations during that period, you might be entitled to this extra tax break.

Examples of business expenses that support utilising digital tools and technologies:

• Website development
• Software and app subscriptions
• Online security
• Digital marketing tools

The deductions discussed here assume:

• The influencer carries on a business, not just earning hobby income.
• The expenses are 100% business-related, with no private use element. 
• If there's a private portion (like using your phone for both content and personal calls), you’ll need to apportion the deduction appropriately (claim only the business %) - and keep good records to back it up.

Claiming Internet Platform-Related Costs

Running your influencer business often means using platforms that help you connect with followers - and get paid. Some platforms (like Patreon, OnlyFans, or others) charge service fees based on a percentage of your earnings.

The good news? These fees are usually tax-deductible.

However, not all costs are treated in the same way:

• Set-up costs: like paying a designer to create your logo or branding for your social media profile are generally considered capital expenses. These costs are not immediately deductible, but they may contribute to your cost base for CGT purposes if you ever sell your account or business.
• Buying followers?: if an influencer regularly spends money to gain followers as part of their ongoing business activities, the cost is tax-deductible. That’s because it’s treated as a normal business expense - the same way a business might pay for ads or marketing.
• If you're buying followers regularly, it's like advertising = deductible.
• If you purchase followers only once during your launch, it’s considered part of your business setup and is not deductible as it’s classified as a capital cost.

So whether you’re paying platform fees or investing in your audience, understanding what counts as a deductible expense, and what doesn’t, can make tax time a little smoother.

What Content Creators Can Claim

Production Costs

Creating social media content doesn’t come cheap - and the good news is, many of those costs are tax-deductible if you're running a business.

From hiring a film crew to renting props or editing support, these everyday content creation costs are typically deductible because they're directly tied to the income you earn through your online presence.

Here are some common production expenses you might be able to claim:

• Fees paid to videographers, editors, actors, stylists, or makeup artists
• Renting a studio or content-friendly space
• Renting equipment like cameras, lights, or props
• Outsourcing video editing to a production company
• If you film from home, you may be able to claim a portion of your internet or utility costs - and even rent or mortgage interest if your home qualifies as a place of business

And yes, even clothing worn in your content might be deductible, but only in specific situations. We’ll get to that soon.

Don’t Forget Depreciating Assets

If you’ve bought gear specifically for your content, think lighting kits, cameras, gaming chairs, or gym equipment - these may also qualify for a tax deduction. We’ve got a blog on this too! 

The rules differ depending on when the asset was purchased and your business structure:

• Temporary Full Expensing: If you purchased and started using the asset between 6 October 2020 and 30 June 2023, you could claim the full cost upfront.
• Instant Asset Write-Off: If you’re a Small Business Entity (SBE) and the asset costs less than $20,000, you can deduct it in full if first used between 1 July 2023 and 30 June 2025.
• Assets $20,000 or more will go into a small business pool and be depreciated over time. 

Working from Home? Here's What You Can Claim

The rules differ depending on when the asset was purchased and your business structure:

Let’s face it—many influencers don’t work in traditional studios or rented office spaces. For most, HQ is a bedroom, lounge room, or even a converted garage. If that sounds like you, there are tax deductions available, but it’s important to understand what you can and can’t claim. We’ve got two blogs on this! Base info, and additional info.

The ATO breaks down home-based business expenses into two main types: occupancy costs and running costs.

1. Home Occupancy Costs

These include things like:

• Rent or mortgage interest
• Council and water rates
• Home insurance
• Land tax

To claim occupancy costs, part of your home must be used as a place of business - not just a casual filming spot. That means an area that you use exclusively for work. For example, a spare room set up permanently as a filming studio might qualify.

Important: If you’re earning income through personal services like a fitness influencer running virtual classes - the Personal Services Income (PSI) rules may limit your ability to claim occupancy deductions like rent or mortgage interest.

2. Home Running Costs

This is where most influencers can claim deductions. These costs relate to using home facilities to run your business and include:

• Electricity and gas (heating, cooling, lighting)
• Internet and phone bills
• Depreciation of furniture or equipment used at home
• Stationery and computer consumables

Fixed rate method: Cents per Hour

From 1 July 2022, the ATO introduced a revised fixed-rate method to make it easier to claim running costs when working from home. You can claim a set rate per hour worked from home that covers:

• Energy expenses (e.g. electricity and gas)
• Internet and phone usage
• Stationery and computer consumables
  

Just keep a record of your work hours to back up your claim - this could be a timesheet, calendar log, or time-tracking app.

Fixed Rate per Hour by Income Year:

Want to Claim Actual Costs Instead?

That’s fine too, but you’ll need detailed receipts and a reasonable method for calculating how much of the expense relates to your business use.

You can also separately claim depreciation on business-use items like mobile phones or laptops - especially if you acquired them under the Temporary Full Expensing or Instant Asset Write-Off rules.

Claiming Clothing Expenses as an Influencer

While clothing often plays a big role in social media content, not all clothing costs are tax deductible. The ATO has strict guidelines.

Here are the key situations when you may be able to claim:

Protective Clothing

If the clothing is genuinely worn to protect you during business activities, such as those listed below, then it may be deductible. Regular clothes like jeans or sneakers don’t count - even if you wear them for content - they’re considered private in nature.

• Sunhats for outdoor shoots
• Heavy-duty raincoats for filming in wet weather
• High-visibility vests for travel influencers filming in active construction or industrial areas
• Steel-capped boots for adventure/outdoor influencers trekking rough terrain
• Face masks or respirators for beauty influencers handling strong chemicals (e.g., hair bleach) or artists using aerosol paint
• Thermal jackets and snow gear for influencers shooting content in cold-climate/snowy conditions

Own-Brand Clothing

Selling your own merch? If you wear your branded clothing in content to promote or sell it, the ATO may consider the cost deductible, because it's directly linked to generating business income.

Costumes or Themed Outfits

You might claim clothing as a business costume if it’s:

• Acquired specifically for content
• Worn in line with a specific business strategy, and
• Not just something you'd normally wear in daily life

Example: A fitness influencer may be able to claim workout gear if it’s bought for reviews requested by followers. But if it’s just clothes they’d wear to the gym anyway? Probably not deductible.

You can’t claim clothing just because it looks good or appears in your content. For example:

• A fashion influencer buying outfits for multiple style posts
• A content creator building a wardrobe of trendy clothes ‘just in case’

These are considered private lifestyle choices, not business expenses.

Tip: The ATO may allow depreciation on clothes from your personal wardrobe only during the time they’re used as costumes. Keep a record of when and how each piece is used.

 

Food and Travel Deductions for Influencers: What You Can and Can't Claim

If you’re a food or travel influencer, chances are you’ve spent a good chunk of change dining out or jetting off to capture that perfect content. But come tax time, you might be wondering - can you claim those meals and getaways as business expenses?

The short answer: sometimes - but only if strict conditions are met. The ATO tends to view food and travel as personal or entertainment expenses, which are typically non-deductible. So if you’re hoping to claim a deduction, you need to be ready to prove it was really for business.

Here’s how it works:

Can You Claim Food Costs?

For most influencers, the answer is no - even if you post a rave review of that $25 burger. The ATO generally sees food expenses as private in nature or as entertainment, which means they’re not deductible.

But there are a few situations where a food-related deduction might be acceptable:

When Food Might Be Deductible:

• You reviewed a restaurant your followers specifically asked about
• You specialise in a specific cuisine, and the restaurant fits your niche

You frequently post reviews of new dining venues, and the meal was part of that ongoing content

Remember: You need to show a clear and direct connection between the expense and your income-producing activities, not just that it was vaguely related to your content.

Example: A food influencer is asked by followers to try a newly opened vegan café. They pay for a meal, record content, tag the business, and generate ad revenue from the post. This scenario makes a stronger case for a deduction.

But if you’re just out grabbing brunch and casually mention it online - that’s still likely private.

What About Travel Deductions?

Travel can be trickier, but not impossible. To claim expenses like flights, accommodation, and transport, you must prove the trip was primarily for business purposes.

Travel Deductions May Be Allowed If:

• You spend most of your time at the location creating content, meeting with collaborators, or conducting reviews
• The stay is short-term and content-focused, not just a leisurely vacation
• You bring a film crew, which signals a serious work trip
• You travel alone (i.e. without family), emphasizing that it’s not a holiday

You visited the location based on a genuine request from followers

Example: A travel influencer is invited to review a new resort, spends three days filming content, meets with hotel staff, and produces sponsored posts. That’s business. But if they stay two weeks, bring their family, and post a few casual photos? The ATO is likely to treat that as private travel.

No records = no deduction

Even if your food or travel expenses might qualify, you won’t get far without evidence. That includes:

• Receipts and invoices
• A travel diary that details where you went, what you did, and how it ties to your content
• Screenshots or posts proving the business purpose (e.g., follower requests or reviews)

No records = no deduction. This is why record-keeping is crucial. 

The ATO applies strict criteria, especially when it comes to expenses that could be personal or entertaining in nature. Even if your lifestyle closely aligns with your content, not all related expenses will necessarily be deductible. It helps to ask:

Would I still spend this money if I wasn’t running this business?"

If the answer is yes, chances are it’s private and not deductible.

Food and travel deductions are possible, but they have conditions. To claim them, influencers must:

• Prove a direct link to their business income
• Show the expense wasn’t for personal enjoyment
• Keep comprehensive records; track all expenses and income carefully
  
  

Navigating tax deductions as an influencer can be complex, especially when your personal and business lives intersect. It's crucial to understand what the ATO defines as a genuine business expense to ensure you remain compliant and confident during tax time.

Not every post, trip, or outfit qualifies for deductions, so it's essential to recognise which expenses truly count. When in doubt, consult a trusted accountant who can clarify these grey areas. This way you can concentrate on your creative work, without the burden of tax-related headaches. Take control of your finances and eliminate any uncertainty.

Want to learn more, read the other blogs in our series:

Content Creation as a Business and Income Influencer & Tax Explained

Reference:

• Blackhole Expenditure - Section 40-880 ITAA 1997 Business related costs
• Small business technology investment boost
• Marketing expenses: Source One and Source Two
• Claiming a deduction for additional running expenses incurred while working from home - ATO compliance approach
• Clothing - Source One and Source Two