Tax Deduction for Bloggers and Social Media Influencers

Firstly, you need to be blogging as a business, rather than a hobby. It means that you regularly earn money from blogging, either through direct fees or sponsorships from the companies about which you write. If you operate on a pay-per-view model, you can also earn revenue from subscriptions from readers. Your blogging costs can be deducted if this is the case.

You can claim the following expenses if you are a blogger/social media influencer:

Costs associated with the Internet

If you have a blog, you can claim internet-related expenses, such as hosting fees, domain registration fees, blogging software fees, and image or music downloads. In addition, if you run your blogging business from home, you can claim a portion of your home internet costs. All internet costs can be claimed if you work from a dedicated office away from home.

Computer equipment

Until 30 June 2023, self-employed bloggers can claim a tax deduction for any capital equipment purchased for their business under the temporary full expensing method. The list includes your computer, laptop, wireless router, keyboard, mouse, monitor, webcam, and digital camera. In 2023, bloggers will be able to claim an immediate deduction for capital items costing less than $1,000 - still enough to claim many of the items listed above.

Costs associated with the office

The rent or mortgage interest on your home can be deducted as a tax deduction if you operate your blogging business from your home office. It is important to claim an appropriate proportion compared to the overall size of the property, as this is an area the ATO pays close attention to. If you use that space for your blogging business, you can also deduct a portion of your household bills. A portion of your electricity, water, and gas bill could be included in this.

Expenses related to communications

Mobile phone costs can also be claimed, as well as landline and mobile phone calls related to business.

Office equipment

Additionally, you can claim furniture items such as desks, chairs and filing cabinets using the temporary full expensing measures (see computer equipment above).

Stationery and office supplies

You can claim all the stationery and office supplies you use in your blogging business, including business cards and letterheads.

Design, advertising, and promotion

Investment in cutting-edge design and promotion is crucial to establishing your blogging brand. Therefore, you can claim branding-related expenses such as blog design, advertising, logo design, promotional giveaways, and search engine optimization.

Other expenses

It is possible to claim a variety of other expenses as well. A professional photographer can create headshots for your blog and promotion at the expense of reusing photos or images owned by other entities. The cost of hiring an accountant to prepare your tax return or provide you with tax advice can also be claimed.