Crowdfunding and Tax Implications

Crowdfunding is the practice of using social media and the internet to raise funds and supporters for a particular project or venture. There may be tax consequences if you are involved in crowdfunding, depending on the nature of the arrangement, your role and your circumstances.

If you’re receiving funds through crowdfunding it’s important to determine if this is taxable income and if your transactions could be subject to GST. If the project is determined to be a business, then records should also be maintained for any allowable deductions associated with the venture.

If you provided money to a crowdfunding project and receive a financial return, this could be assessable income. If you have any questions regarding this new and evolving area of the economy, please do not hesitate to speak with one of our CIB accountants on 02 9683 5999.