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The tax guide for Australian creators earning membership and subscription income on Patreon, Substack or Ko-fi: ABN, why foreign-platform income is GST-free (and the $75K trap), what you can claim, and exactly how much tax you'll pay.
Last updated: July 2026·Source: ATO — GST-free exports, Sharing Economy Reporting Regime
ABN
If it's a business
Foreign platforms
GST-free income
Register GST
If turnover >$75K
Reported to ATO
Yes (SERR)
Money from paying members, subscribers and tips on Patreon, Substack or Ko-fi is assessable business income. If you create regularly with a profit intention, you're a sole trader: no tax is withheld, so you declare the income and pay tax at lodgement (or via PAYG instalments once the ATO issues a notice).
It counts as income the moment it is credited to your platform balance — not when you withdraw it — so a balance left in Patreon at 30 June still belongs to that financial year. Your taxable income = total platform earnings minus deductions (equipment, software, home studio, platform fees).
Since 1 July 2024, electronic distribution platforms report your earnings to the ATO twice a year under the Sharing Economy Reporting Regime — so the ATO sees the figures before you lodge. Declare the full amount and claim your costs.
Patreon and Substack are US-based, so income you receive from them is generally a GST-free export of services— you don't add 10% GST. But two things catch creators out:
Under $75,000, most creators don't register at all. GST-free status is about GST only — it has nothing to do with income tax, which you still pay on the full amount.
Equipment
Camera, microphone, lighting, computer used to create content — items over $300 are depreciated over their effective life.
Software & subscriptions
Editing and design software, hosting, stock assets, scheduling tools — the business-use portion.
Home studio
Business-use portion of a dedicated recording/filming space, or the 70c/hour fixed-rate method for running costs.
Platform fees
The cut Patreon, Substack or Ko-fi take from your earnings is a deductible business expense.
Phone & internet
Work-use % of your monthly plans (keep a 4-week diary to support the percentage).
Content travel
Travel undertaken specifically to create content — not private trips.
Accountant / tax agent fees
Fully deductible in the year paid.
Estimates for creator income as your only income source, before deductions, including the Low Income Tax Offset and 2% Medicare levy:
| Creator income | Income tax | Total (incl. Medicare) | Weekly burden |
|---|---|---|---|
| $20,000 | $0 | $0 | $0 |
| $30,000 | $1,188 | $1,466 | $28 |
| $40,000 | $2,913 | $3,713 | $71 |
| $50,000 | $5,538 | $6,538 | $126 |
| $60,000 | $8,688 | $9,888 | $190 |
| $80,000 | $14,788 | $16,388 | $315 |
Based on ATO 2025-26 brackets with LITO and 2% Medicare. Actual tax is lower after deductions (equipment, software, home studio). Excludes HECS-HELP repayments if applicable.
Log each payout, track deductible equipment, software and home-studio costs, get a quarterly tax estimate, and chat with Felix — your AI CFO — about creator tax. Free on iOS and Android.
Get Richify freeABN (if it's a business)
Free at abr.gov.au in ~10 minutes; choose ‘Individual (sole trader)’. Needed once your creating is regular and commercial, not a one-off hobby.
GST (usually not, until $75K)
Foreign-platform income is GST-free, so you charge no GST — but it still counts toward the $75,000 threshold. Register above it, then remit GST on Australian-subscriber supplies.
Tax return
Lodge via myTax (due Oct 31) or a tax agent (due next May). Report earnings under ‘Business income’ and claim deductions by category.
Super (your responsibility)
No employer super. Make personal contributions before June 30 to claim a deduction — taxed at 15% inside super vs your marginal rate.
Enter your platform earnings, deductions and other income for an ATO-aligned estimate including Medicare and HECS-HELP.
Creator tax calculator →Yes. Money you earn from paying members, subscribers or tips on Patreon, Substack or Ko-fi is assessable business income, taxed at your normal marginal rates. It counts as income the moment it is credited to your platform balance — not when you transfer it to your bank account — so a balance sitting in Patreon at 30 June is still that year's income. Since 1 July 2024 these platforms report your earnings to the ATO twice a year under the Sharing Economy Reporting Regime, so the ATO already sees the figures before you lodge. Declare the full amount and claim your costs as deductions.
Generally yes, because Patreon and Substack are overseas (US-based) platforms, so income you receive from them is usually treated as a GST-free export of services — you don't add 10% GST. But there's a trap that mirrors the NDIS one: GST-free turnover STILL counts toward the $75,000 GST-registration threshold. And once you are registered for GST, you are liable for GST on supplies made to Australian-resident subscribers (calculated on the gross amount they pay, not the net after platform fees). Ko-fi and any Australian-based platform income follow the ordinary GST rules.
Only once your total business turnover reaches $75,000 in a 12-month period — but count your GST-free foreign-platform income toward that $75,000, because it still counts even though it carries no GST. So a creator earning $80,000 of otherwise GST-free Patreon income must register and lodge a BAS. Registering also lets you claim GST credits on your equipment and software. Under $75,000 most creators don't register at all.
If you're carrying on a business — creating content regularly, with a profit intention and a growing member base — yes, you need an ABN, and it's free at abr.gov.au (choose 'Individual (sole trader)'). A genuine one-off or hobby with no profit motive may not be a business, but the ATO looks at scale, regularity and commerciality. Once it looks like a business, get the ABN, keep records, and declare the income.
When it is credited to your platform balance. The ATO treats the funds as earned the moment they land in your Patreon, Substack or Ko-fi account, regardless of when you pay it out to your bank. So money you leave sitting on the platform across 30 June is still assessable in that financial year. Keep the platform's payout and earnings reports — they reconcile to what the ATO receives under the Sharing Economy Reporting Regime.
Anything you use to earn the income, apportioned for private use: cameras, microphones, lighting and computers (items over $300 are depreciated); editing and design software and other subscriptions; the business-use portion of a home studio; the platform's service fee (Patreon/Substack/Ko-fi cut); the work-use percentage of phone and internet; and accountant or tax-agent fees. You can't claim ordinary clothes, private-use portions, or anything a sponsor separately reimbursed.
Tax is on your total taxable income (creator income plus any other income) after deductions, using the ATO 2025-26 brackets: nil to $18,200; 16% to $45,000; 30% to $135,000; 37% to $190,000; then 45%, plus 2% Medicare levy. A creator whose only income is $50,000 pays roughly $6,538 including Medicare before deductions — less once equipment, software and home-studio costs are claimed. Because no tax is withheld, set aside around 20–30% of each payout for tax (and some for your own super).
Yes. Money you earn from paying members, subscribers or tips on Patreon, Substack or Ko-fi is assessable business income, taxed at your normal marginal rates. It counts as income the moment it is credited to your platform balance — not when you transfer it to your bank account — so a balance sitting in Patreon at 30 June is still that year's income. Since 1 July 2024 these platforms report your earnings to the ATO twice a year under the Sharing Economy Reporting Regime, so the ATO already sees the figures before you lodge. Declare the full amount and claim your costs as deductions.
Generally yes, because Patreon and Substack are overseas (US-based) platforms, so income you receive from them is usually treated as a GST-free export of services — you don't add 10% GST. But there's a trap that mirrors the NDIS one: GST-free turnover STILL counts toward the $75,000 GST-registration threshold. And once you are registered for GST, you are liable for GST on supplies made to Australian-resident subscribers (calculated on the gross amount they pay, not the net after platform fees). Ko-fi and any Australian-based platform income follow the ordinary GST rules.
Only once your total business turnover reaches $75,000 in a 12-month period — but count your GST-free foreign-platform income toward that $75,000, because it still counts even though it carries no GST. So a creator earning $80,000 of otherwise GST-free Patreon income must register and lodge a BAS. Registering also lets you claim GST credits on your equipment and software. Under $75,000 most creators don't register at all.
If you're carrying on a business — creating content regularly, with a profit intention and a growing member base — yes, you need an ABN, and it's free at abr.gov.au (choose 'Individual (sole trader)'). A genuine one-off or hobby with no profit motive may not be a business, but the ATO looks at scale, regularity and commerciality. Once it looks like a business, get the ABN, keep records, and declare the income.
When it is credited to your platform balance. The ATO treats the funds as earned the moment they land in your Patreon, Substack or Ko-fi account, regardless of when you pay it out to your bank. So money you leave sitting on the platform across 30 June is still assessable in that financial year. Keep the platform's payout and earnings reports — they reconcile to what the ATO receives under the Sharing Economy Reporting Regime.
Anything you use to earn the income, apportioned for private use: cameras, microphones, lighting and computers (items over $300 are depreciated); editing and design software and other subscriptions; the business-use portion of a home studio; the platform's service fee (Patreon/Substack/Ko-fi cut); the work-use percentage of phone and internet; and accountant or tax-agent fees. You can't claim ordinary clothes, private-use portions, or anything a sponsor separately reimbursed.
Tax is on your total taxable income (creator income plus any other income) after deductions, using the ATO 2025-26 brackets: nil to $18,200; 16% to $45,000; 30% to $135,000; 37% to $190,000; then 45%, plus 2% Medicare levy. A creator whose only income is $50,000 pays roughly $6,538 including Medicare before deductions — less once equipment, software and home-studio costs are claimed. Because no tax is withheld, set aside around 20–30% of each payout for tax (and some for your own super).