Paid newsletters have turned writing into a real income stream. Whether you are on Substack, beehiiv, Ghost or running your own list, if readers pay to subscribe, that money is taxable in Australia. The good news is that a writing business is simple to run and cheap to operate, so the tax side is very manageable once it is set up right. Here is how it works.
Is Your Newsletter Income Taxable?
Yes. If you publish with the intention of earning money, you are running a business as a sole trader, and your subscription revenue is assessable income. It is added to any other income you earn and taxed at your individual marginal rate, with the $18,200 tax-free threshold applying across the total. A free newsletter you run purely as a hobby with no income is a different story, but the moment paid subscriptions or sponsorships come in, it is a business.
How Newsletter Writers Earn
- Paid subscriptions, monthly and annual
- Sponsorships and paid placements within issues
- Affiliate income from products you recommend
- Digital products such as guides, templates and courses
- Tips and one-off reader support
Platform Fees and Payouts
Most platforms take a percentage and pay you through a processor like Stripe, often in US dollars. You declare the income you earn and claim the platform and processing fees as deductions. Keep the payout reports so you can show gross revenue and fees separately, then reconcile to your bank deposits. If you are paid in USD, convert each payout to AUD using the rate on the day you received it, and a W-8BEN helps reduce unnecessary US withholding.
What Newsletter Writers Can Claim
A writing business has modest costs, and they are deductible to the extent they relate to your work:
- Platform subscription fees and email tools
- Computer, laptop and accessories (depreciated if over $300)
- Writing and editing software, grammar tools and design apps for your header images
- Research costs such as relevant books, reports and subscriptions
- Website and domain costs
- Internet and the business share of electricity
- Home office running costs via the home office deduction
- Freelance editors or illustrators you pay
Our complete creator deductions guide covers everything in more detail.
ABN, GST and Keeping It Simple
You will generally want an ABN to run your newsletter as a business. Once your turnover reaches $75,000 you must register for GST. Because nothing is withheld from your subscription payouts, set aside a portion of each payment for tax as you go. With simple records and a little discipline, a paid newsletter is one of the cleaner creator businesses to run at tax time.
Frequently Asked Questions
Is Substack or newsletter income taxable in Australia?
Yes. Paid subscription income from Substack, beehiiv, Ghost, Patreon or any newsletter platform is assessable income once you write with the intention of earning money. It is taxed at your individual marginal rate along with your other income and must be declared.
The platform takes a cut and pays through Stripe. What do I declare?
You declare the income you earn, and you can claim the platform and payment processing fees as deductions. In practice, keep the platform's payout reports so you can show gross subscription revenue and the fees separately, then reconcile to what actually hits your bank account.
Can I claim research, books and my writing tools?
Yes, where they relate to producing your paid content. Research materials, relevant books and subscriptions, writing and editing software, your computer, and home office running costs are deductible in proportion to business use.
Getting paid to write? We'll handle the numbers.
CreatorTax helps writers and newsletter creators keep tax simple so they can keep publishing. We are Chartered Accountants who specialise in creator tax returns.
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