📚 Self-Publishing Income from Amazon, Google & Draft2Digital
📚 Self-Publishing Income from Amazon, Google & Draft2Digital
If you earn money from self-publishing books, ebooks, or audiobooks through platforms like Amazon KDP, Google Play Books, or Draft2Digital, that income is taxable in Australia.Whether you receive royalties or direct payments, you must report this income in your tax return.
You’re considered to be running a publishing business if you:Publish regularly to make a profitHave an ABNMarket or promote your booksKeep records and manage expenses like a business
🧾 Tax ImpactYou’ll pay tax on your net profit (your income minus expenses).Expenses like editing, book design, ads, subscriptions, or website costs are deductible.If your total income exceeds $75,000, you must register for GST.
🎁 When It’s Hobby or Side IncomeIf you publish occasionally or as a hobby, your income is still taxable — but it’s treated differently.You report it as royalty income or other income, and you can only claim direct costs related to earning that money.
Example:If you earned $3,000 from Amazon and spent $800 on editing, your taxable income is $2,200.
🌍 Income from Overseas Platforms
Most self-publishing platforms like Amazon or Google pay you in foreign currency (usually USD) and may withhold foreign tax.
💱 Currency ConversionAll foreign income must be shown in Australian dollars (AUD).Use the ATO’s exchange rate on the date you received payment.
💸 Foreign Tax WithheldIf tax is withheld overseas (for example, by Amazon US), you must:Report the gross amount before foreign tax in your Australian return.Claim a Foreign Income Tax Offset (FITO) to avoid being taxed twice.
🏠 Residency RulesAustralian Residents: Must declare all worldwide self-publishing income — even from foreign platforms.Foreign Residents: Only report Australian-sourced income (if any).
💡 ExampleSara, an Australian author, earns USD 10,000 from Amazon.Amazon deducts 10% U.S. tax and pays her USD 9,000.Sara must:Convert the full USD 10,000 to AUD,Report it in her Australian tax return, andClaim the U.S. tax withheld as a Foreign Tax Offset.
⚖️ Tax Impact SummaryFor Australian residents, all self-publishing income — even from overseas — is taxable.Business publishers can claim full deductions and may need GST registration, while hobby publishers must declare income but can only claim limited costs.Foreign earnings must be converted to AUD, and you can claim a Foreign Tax Offset if tax was already withheld overseas.
