If you earn income from OnlyFans, the ATO considers you self-employed. That means you are running a business, and like any business, you can claim work-related deductions to reduce your taxable income. The catch? Most creators have no idea what they are actually entitled to claim, and end up either missing out on legitimate deductions or overclaiming and landing themselves in hot water.
Here is what most creators miss.
What Can OnlyFans Creators Claim?
As a self-employed content creator, you can claim deductions for expenses that are directly related to earning your OnlyFans income. Here are the big ones:
Cameras, ring lights, softboxes, tripods, and any other gear you use to shoot content. Items over $300 are depreciated over their effective life, while items under $300 can be claimed in full in the year you buy them.
If you purchase clothing, costumes, or props that are used exclusively for your content and would not be considered everyday wear, you can claim them. The key word here is "exclusively". A regular outfit you also wear to brunch? That is not deductible.
You can claim the work-related percentage of your internet and phone costs. If you use your internet 60% for content creation (uploading, streaming, communicating with subscribers), you can claim 60% of the bill. Keep a usage log for at least a four-week representative period.
If you have a dedicated workspace at home where you create content, you can claim a portion of your rent, electricity, and other running costs. The ATO offers a fixed rate method or you can calculate actual costs. A dedicated space means a room or area used primarily for work, not just your living room couch.
Any fees charged by OnlyFans (they take 20%), payment processing fees, or subscriptions to other platforms you use for promotion (such as a paid scheduling tool or analytics service) are fully deductible.
Makeup, skincare, and grooming expenses can be claimed, but only if they are specifically for content creation. Your everyday moisturiser does not count. However, stage makeup, body products used on camera, or professional grooming appointments before a shoot can be legitimate deductions.
Adobe Photoshop, Premiere Pro, Lightroom, Final Cut Pro, Canva Pro, and any other editing tools you pay for are fully deductible. This includes monthly subscriptions and one-off purchases.
Yes, the cost of getting your tax return done by a professional is itself tax deductible. That includes us. So hiring a specialist creator accountant actually pays for itself in a way.
What You Can't Claim
Not everything is fair game. The ATO is very clear about what does not qualify as a work-related deduction. If an expense is personal in nature, you cannot claim it, even if you think it helps your brand.
- Personal clothing that you also wear outside of content creation. If it is not exclusively for work, it is not deductible.
- General groceries and food costs. Eating well might make you look great on camera, but the ATO does not see your weekly shop as a business expense.
- Gym memberships, unless your content is directly fitness-related and you can clearly document that the gym is used for content production. Even then, you would likely only claim a percentage. This one gets flagged by the ATO often, so be careful.
How to Keep the ATO Happy
Claiming deductions is your right as a self-employed creator, but you need to do it properly. The ATO has been increasingly looking at content creators, so here is how to stay on the right side of things:
- Keep every receipt. Digital or physical, it does not matter. Use an app or a dedicated folder. If you cannot prove the expense, you cannot claim it.
- Use a separate bank account. Mixing personal and business transactions makes everything harder. A dedicated business account makes tracking income and expenses straightforward.
- Log your hours. Especially for home office and internet claims. A simple spreadsheet showing when you worked and for how long is enough to support your claims.
- Do not overclaim. If something is 50% personal and 50% work, claim 50%. The ATO uses data matching and benchmarks. If your deductions look wildly out of proportion to your income, expect a review.
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