If you earn money from modelling, social media, or both, the ATO sees you as running a business. That means you can reduce your taxable income with legitimate deductions, provided you understand the rules and keep proper records. Here’s how it works.
First, get your structure right
Most models and creators operate as sole traders with an ABN. Your income is taxed at your individual marginal rates, and you’re responsible for keeping your own records, lodging your own return, and in some cases paying tax in instalments through PAYG.
GST registration becomes compulsory once your annual turnover reaches $75,000. Below that, it’s optional. Registering early can let you claim GST credits on business purchases, but it also means charging GST and lodging BAS.
One more thing to check is whether the ATO would regard what you do as a business or a hobby. A few paid gigs a year with no real intent to profit may not qualify, which would affect whether you can claim losses against other income.
Income you might not realise is taxable
Before deductions, make sure you’ve declared everything. Many creators miss these:
Free products and gifted trips. If a brand sends you goods or services in exchange for content, the market value is generally assessable income.
Platform payments. Earnings from YouTube, TikTok, Instagram, Twitch, and similar services count, even when paid in foreign currency or by an overseas company.
Affiliate commissions and sponsorships. These are income whether they arrive monthly, sporadically, or as a lump sum.
Agency payments. Report the gross amount, then claim the agency’s commission as a deduction.
Deductions that commonly apply
Equipment and software. Cameras, lighting, microphones, laptops, editing apps and other subscriptions are deductible for the work-related portion.
Travel and transport. Getting to castings, shoots, meetings and events is claimable, including public transport, taxis, rideshares and car costs. Travel from home to your first job and back from your last is private. Travel between jobs on the same day is.
Working from home. If you record content, edit, or handle bookings and admin from home, you can claim some of the costs, such as electricity, and internet. If you have a dedicated shooting or content room, the costs of that space may also be claimable.
Phone and internet. Only the work-related share is claimable. For example, if 40% of your phone use is for work, you can claim 40% of the costs. Recommended to keep a usage log for about four weeks to show how you calculated the percentage, as the ATO may ask for evidence.
Portfolio and promotion. Professional photos, comp cards, showreels, website hosting, domain names and paid advertising are all costs of presenting yourself to clients.
Agency commissions. The commission your agency takes, often around 20%, is deductible. Keep the remittance statements that show what was deducted.
Training. Courses that maintain or improve skills you already use, such as acting, movement or runway coaching, and video editing, can be claimed. Courses that move you into a new field generally can’t.
Wardrobe, hair and makeup. This is where claims most often fail. Everyday clothing, haircuts and regular grooming are usually private. Costumes and styling costs incurred for a specific job may qualify, so keep the receipt and note the job.
Insurance and professional fees. Public liability and equipment insurance, accountant and bookkeeping fees, and business bank account fees are deductible.
Super contributions. Personal contributions to super can be claimed as a deduction, and the concessional cap is $32,500 from 1 July 2026, up from $30,000 in the previous two years. You must lodge a notice of intent with your fund, and receive its acknowledgement, before you lodge your tax return
Working across borders
Many models and creators work internationally in the same year. When you do, each expense should be matched to the country where the income was earned. A flight to London for a London shoot relates to UK income. The flight home may relate to your Australian work.
Keep these records for any overseas work:
The currency and amount of each expense
The exchange rate on the date of the transaction
Which country’s income each expense supports
Any foreign tax withheld or paid, which may entitle you to a foreign income tax offset in Australia
Australian residents are generally taxed on their worldwide income, so overseas earnings still need to be declared here, even if tax was already paid abroad. If travelled for work for more than six consecutive days, a travel dairy is recommended as record of work-related costs incurred.
Keeping records the ATO will accept
Records generally need to be kept for five years. A good system includes:
A running list of expenses by category
Digital copies of receipts
Business bank and credit card statements
Agency remittance advices and contracts
A logbook for car travel, and a log for phone or home office use
Travel diary
Notes on any mixed-use or overseas expenses
Set up an automated process early, such as photographing receipts as you go, or using accounting software connected to a separate business bank account. It makes the end of the financial year, 30 June, far less stressful.
Common mistakes to avoid
Mixing personal and business spending in one account
Claiming 100% of items that are partly private
Forgetting to report gifted products and overseas platform income
Claiming clothing and grooming without a specific work link
Waiting until 30 June to think about super contributions, which need to reach the fund by then
Every creator’s situation differs depending on income level, structure, and how many countries they work in. See the ATO published guidance for performing artists that covers models and content creators, and it’s a useful place to start.
