Accounting and tax for digital product creators.
You can generally claim your platform fees, advertising, software and home studio equipment against your creator income, provided each one relates to earning it and you keep the records. This guide covers what digital product creators typically claim, how GST applies to digital sales, and how we help you plan for the tax bill when your income spikes off the back of one good month. We're Brisbane based and work with creators and course builders right across Australia.
Updated July 2026 · Reviewed by the LINK Advisors team
What digital product creators can claim.
Ordered by typical value. Every claim still has to pass the ATO's tests: you paid for it, it relates to earning your income, and you can show a record.
Platform and marketplace fees
The cut taken by Gumroad, Teachable, the App Store, Google Play or similar platforms before you're paid is generally deductible as a cost of selling through them.
Advertising and marketing spend
Meta, Google and other advertising used to drive sales of your product, course or app is generally deductible.
Home studio and equipment
Cameras, microphones, lighting and computer equipment used to create your content or product are generally deductible, either claimed outright or depreciated depending on the cost, apportioned for any personal use.
Software subscriptions
Design, editing, development and hosting software used to build and maintain your product are generally deductible.
Contractor and freelancer costs
Payments to editors, developers, designers or virtual assistants who help produce or support your product are generally deductible.
Website and hosting costs
Domain, hosting and website building costs are generally deductible.
Home office running costs
If you create and manage your product from home, a portion of your running costs may be deductible under the ATO's fixed rate method - ask us what applies and what records you need to keep.
Professional development
Courses and resources that build the skills behind your product or your ability to market it are generally deductible.
Business insurance
Public liability or professional indemnity cover relevant to your product or advice is generally deductible where you hold it.
GST and BAS, done right.
Digital products sold to Australian customers are generally taxable supplies, so once you're registered you charge GST on them the same as a physical product. Sales to customers outside Australia are generally treated differently, and getting that split right in your invoicing or platform settings matters as your audience grows internationally.
Some platforms, particularly app stores, can handle GST collection and remittance themselves on certain sales made through them, similar to how physical goods marketplaces work. That means your own reporting needs to reflect what the platform has already dealt with rather than assuming you're always the one charging and remitting GST.
Creator income can be genuinely lumpy: a quiet year followed by one product or piece of content taking off unexpectedly. That spike is still assessable income in the year it's received, and it can push you into a higher tax bracket or a PAYG instalment obligation you weren't expecting. Planning for it as soon as a spike looks likely beats finding out at tax time.
The right structure for the work.
Most creators start out as a sole trader, which is simple while income is still building and unpredictable. Once your income becomes more consistent, or you experience a genuine spike you'd like to manage more deliberately across future years, a company structure can offer more flexibility over how and when profit is drawn out. It's worth revisiting once your numbers are established enough to plan around rather than react to.
Run the work, we run the numbers.
Reconciling payouts from Gumroad, Teachable, app stores or wherever else you sell into Xero properly, rather than booking the net deposit, gives you a true picture of revenue against platform fees. A simple equipment register for your studio gear, kept alongside your Xero file, also makes depreciation claims straightforward at tax time instead of a scramble through old receipts.
Frequently asked questions.
Can I claim my camera and studio equipment?
Generally yes, for the portion used to create your product or content. Cameras, microphones, lighting and computer equipment are deductible, either claimed outright or depreciated depending on cost, with any personal use apportioned out.
How is GST treated on digital product sales?
Sales to Australian customers are generally taxable once you're registered, while some platforms handle GST collection themselves on certain sales, particularly through app stores. We review your specific sales channels to make sure your own reporting lines up correctly.
My income spiked this year. What does that mean for tax?
A spike is still assessable in the year you receive it and can push you into a higher bracket or trigger PAYG instalments you weren't expecting. The earlier we know a spike is coming, the more we can help you plan around it rather than being caught by a large bill later.
Can I claim platform fees from Gumroad or the App Store?
Yes, generally. The fees these platforms take before paying you out are deductible as a cost of selling through them, and should be reconciled properly rather than just netted off against the deposit in your books.
Should I set up a company once my income is more predictable?
Often worth considering at that point, since a company structure can give you more flexibility over how profit is drawn out and taxed across years, particularly if your income has genuine spikes. Sole trader remains a sensible starting point while things are still finding their level.
Talk to an accountant who knows creator businesses.
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