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Edited version of private advice
Authorisation Number: 1051933869643
Date of advice: 16 December 2021
Ruling
Subject: Special professional above average income
Question
Are you considered to be a special professional for the purposes of the concessional tax treatment under Division 405 of the Income Tax Assessment Act 1997 (ITAA1997) for your work as a social media influencer?
Answer
Yes.
Section 405-25(3) of the ITAA 1997 provides that a performing artist includes someone who performs or appears in or on a film. Film is defined in subsection 995-1(1) of the ITAA 1997 as an aggregate of images, or of images and sounds, embodied in any material. This definition is wide enough to capture website platform videos.
Further information on income averaging for special professionals can be found by searching QC 64898 on ato.gov.au
This private ruling applies for the following periods:
Period ending 30 June 20XX
Period ending 30 June 20XX
Period ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are paid to promote brands and products online via social media channels including Instagram, Facebook and YouTube.
You are an Australian resident for tax purposes.
You provide your services as a social media "influencer" and are paid to promote brands and products online via social media channels such as Instagram, Facebook and YouTube.
You currently have over XXX,000 followers on Instagram alone.
You perform in front of an online audience.
You gained your fame and online following from publicity after you appeared in a TV Show. Since this time, you have been performing using online platforms and other promotional opportunities.
You are a sole trader and do not receive any salary or wages for your performances. All the income you receive is because of your providing services relating to your activities as a special professional including promoting goods and services online, providing services as a commentator or reviewer of products and appearing online.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 405-15(1)
Income Tax Assessment Act 1997 subsection 405-25(1)
Income Tax Assessment Act 1997 subsection 405-25(4)
Income Tax Assessment Act 1997 subsection 405-25(5)
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