It was recently determined by the Australian Tax Office (ATO) that if you make money from YouTube, you are classed as a ‘Performing Artist’ and you now have to pay tax on that income.
In the eyes of the ATO, you are a performing artist when the income that is received from Google for your YouTube account video is a reward for providing services relating to activities as a special professional.
When you upload your videos to youtube, you can make revenue by opting to allow advertising to run across your video. The income is then split between Google and the content-generator. Therefore the income can form part of your assessable professional income.
The ATO considers circumstances including regularity, your business plan and a view to making a profit. So if you you are receiving a lot of hits and the clip is deriving income, it is likely the activity would be deemed organised and repeated and you would be required to pay tax.
This Tax Tips Tuesday is brought to you with love by Nudge Accounting. You can read other Tax Tips here.