A brand sent me free products for a post — do I have to declare them on my tax return?

You post skincare videos after work. A brand sends you $600 worth of products and asks for one reel. No invoice, no bank transfer, and it doesn't feel like income.

The ATO sees it differently. On 22 October 2026 it put out a reminder to creators under a blunt line from Assistant Commissioner Anita Challen: "Free doesn't mean tax-free."

What the ATO says about non-cash income

The ATO's guide, Are you in the business of content creation? (last updated 7 October 2026), sorts creators into three groups, and the group decides most of the answer.

If you're carrying on a business, income is assessable, including non-cash amounts. You also keep records, can claim eligible deductions, and may need an ABN and GST registration.

If you're earning income without being in business, which the ATO says is common with side hustles, amounts are still generally assessable, including non-cash amounts. Eligible deductions are available, but the ABN and GST obligations don't apply.

If it's a genuine hobby, what you receive is generally not assessable and related expenses aren't deductible. The guide accepts that a hobbyist may occasionally receive a small prize, gift or benefit connected with the hobby.

Income to declare includes platform ad revenue, sponsorships and brand deals, affiliate commission, subscriptions, tips and donations, foreign income, and gifted or promotional products at market value.

What the numbers can look like

The guide's own example is a lifestyle influencer invited to a Maldives resort in return for agreed content, with no cash paid. It values the flights at $8,000 and the accommodation and other benefits at $5,000, so $13,000 generally goes into her assessable income.

To see the effect, assume an employee on a $90,000 salary had the same arrangement in 2026–27, with no deductions against it. Taxable income would be $103,000, all of the extra sitting in the 30% bracket, so with the 2% Medicare levy the additional tax is about $4,160, and none of the $13,000 arrived as money. This is an illustration only. A real result depends on the actual value received and on any deductions available.

The guide also has a smaller case: a travel blogger who posts occasionally and takes a one-off $500 from a hotel isn't in business, but the $500 is still assessable.

How to tell whether you're in business

There's no follower count or dollar threshold. The ATO looks at the overall impression across seven indicators in draft ruling TR 2026/D2: commercial purpose, intention, purpose and prospect of profit, not being a hobby, business-like organisation, size and scale, and repetition and regularity. No single one decides it.

For creators, the guide points to things like contracts with brands, a content calendar, regular posting and money spent on equipment. In the draft's examples, the shift tends to happen when someone starts actively chasing advertising, sponsorship and subscriptions.

Three common mistakes

"My following is too small to count." The guide says a small following or modest revenue doesn't automatically mean it's a hobby.

"I have a full-time job, so this is just on the side." The draft ruling says having other employment doesn't stop an activity being a business, and it assesses the activity separately. One of its examples is a retail worker whose skincare channel becomes a business.

"The platform isn't Australian." An Australian resident's assessable income includes ordinary income from all sources, in or out of Australia, and the guide lists foreign income. So payments and tips through overseas platforms need the same check, converted to Australian dollars.

Why the date matters

TR 2026/D2 is a draft, and it represents the Commissioner's preliminary view. Comments close on 27 November 2026. When finalised, it is proposed to apply both before and after its date of issue, so it isn't just a question for future years. If you rely on the draft reasonably and in good faith and it turns out to be wrong, the ATO says you won't pay interest or penalties, though you may still have to pay the correct tax.

The ATO says it finds undeclared creator income through data-matching with platforms, lifestyle asset programs and community tip-offs.

What a sensible first step looks like

List what you received in 2025–26 and so far in 2026–27, including products, trips and tips, with what you were asked to do in return and a market value at the time. Where a product arrives with no stated obligation, the guide doesn't give a separate rule, though Challen's wording is that something gifted because of your content generally needs to be declared, so it's worth recording rather than assuming it's free.

Keep business records for at least 5 years. Where something is used for both content and private life, the ATO says only part of the cost can be deducted. If you're in business, GST registration applies at $75,000 or more in a 12-month period, and the guide says GST-free payments from foreign advertising networks count toward that figure. It doesn't spell out how non-cash deals count, so ask before you get close.

This is general information based on ATO publications as at 8 November 2026, not advice about your situation. Our sole traders and ABN service covers creator income, GST and BAS, and the income tax calculator on this site shows the effect of extra income on your tax. We've also written about which exchange rate to use for overseas income, and whether side business losses can offset your salary.