Influencers and celebrities are about to be hit with a ‘fame tax’

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Unless you’ve been hiding under a rock the past week, you’ll know that Australia’s Federal Budget was announced on Tuesday.

One of the more interesting additions was a ‘fame tax’, which will be handed down to ‘high-profile individuals’ to ensure they’re paying appropriate tax in Australia.

Celebrities, influencers and sports stars will now have to pay higher tax on any income and non-cash benefits they receive from licensing their image rights to companies. Currently, the Insta-famous can take advantage of lower tax rates by licensing their image to a business, which can then claim the investment as a loss and pay just 30 per cent.

The new stipulation will mean that all money made by an influencer is included in their assessable income. It will come into effect from July 1, 2019.

budget.gov.au