Tax is not optional for companions in Australia, and the Australian Taxation Office does not make exceptions for the adult industry. Companion income is treated as self-employment income, and you are expected to declare it, pay tax on it, and meet the same obligations as any other sole trader. The good news is that the system is straightforward once you understand the basics, and there are significant deductions available that can substantially reduce your tax bill.
Start with your ABN. An Australian Business Number is free to register and takes about ten minutes through the Australian Business Register website. You do not need to disclose the specific nature of your work when registering. You can describe your business activity in general terms, such as personal services or private services. Your ABN allows you to operate as a sole trader, issue invoices if needed, and is required if you want to accept card payments through MTRX Pay or similar providers. It also prevents clients or payment platforms from withholding tax at the top marginal rate, which they are legally required to do if you cannot provide an ABN.
GST registration is required once your annual turnover exceeds $75,000. Below that threshold, registration is voluntary. If you do register for GST, you charge an additional 10% on your services and remit it to the ATO quarterly through your Business Activity Statement (BAS). Many established companions exceed the threshold, so it is worth planning for GST from the start rather than being caught off guard. If you are below the threshold, you do not charge GST and do not need to lodge a BAS.
Superannuation is often overlooked by self-employed companions, but it deserves attention. As a sole trader, you are not legally required to pay yourself super, but you are allowed to make voluntary contributions and claim a tax deduction for them. Contributing to super reduces your taxable income now and builds your retirement savings. Given the physical demands of companion work and the reality that most people do not work in the industry for their entire career, building a super balance alongside your current income is a genuinely smart financial move.
Deductions are where the real savings happen. The ATO allows you to claim any expense that is directly related to earning your income. For companions, this typically includes advertising costs (including Discretion credits and premium placements), professional photography, work clothing and lingerie, grooming and beauty treatments, condoms and sexual health supplies, a portion of your phone and internet bills, travel between bookings, incall premises costs (rent, utilities, cleaning), accountant fees, and professional development. Keep receipts for everything and consider using accounting software like Xero or MYOB to track expenses throughout the year. A tax agent who is experienced with sex worker clients can often identify deductions you would miss on your own, and their fee is itself deductible.
