Tax on Cashback in Australia: What the ATO Guidance Says
Published 2026-04-28. Reviewed 2026-08-10.
The tax treatment of cashback depends on what the payment legally represents and why the underlying purchase was made. ATO Taxation Determination TD 1999/34 says a reward under a consumer loyalty program resulting from private expenditure is not assessable income. Business or income-producing expenditure can be different, including where an amount is a recoupment of a deductible outgoing. This guide gives general information only and is not tax advice.
Personal shopping: cashback isn't assessable income
ATO TD 1999/34 states that a reward received under a consumer loyalty program resulting from private expenditure is not assessable. That is a useful reference for ordinary private rewards, but the precise treatment of a cashback payment still depends on its facts and legal character. Source: ATO TD 1999/34.
Business purchases: cashback reduces deductible expense
Do not assume every business-related cashback payment simply reduces the deduction. Australian tax law contains assessable-recoupment rules for some reimbursements, refunds and recoveries connected with deductible expenditure. Section 20-20 can include certain recoupments in assessable income, depending on the deduction provision and circumstances. A business should ask its accountant how the particular cashback is treated in its records and tax return. Source: ITAA 1997 section 20-20.
Sole traders and contractors
A sole trader who uses cashback on business or income-producing purchases should keep enough records to connect the reward with the original expense and ask a registered tax agent how it should be treated. Mixing private and business purchases in one cashback account does not make the tax character of every transaction the same.
GST treatment
GST treatment can depend on the contractual structure, the identity of the payer and whether the amount changes the consideration for the underlying taxable supply. Do not automatically recalculate an input tax credit simply because cashback was received. GST-registered businesses should rely on their tax invoice and obtain accounting or tax advice for the specific cashback arrangement.
Record-keeping: what to save
For business or income-producing purchases, keep the retailer invoice, the cashback transaction record, the amount and date paid, and enough information to match the reward to the original purchase. Your accountant can then determine whether the amount changes the expense, is treated as a recoupment or has another consequence.
Edge cases: referral bonuses and signup credits
For referrals made from 8 September 2026, the referrer receives $10 cashback once the referred customer qualifies. The referred customer does not receive a separate referral reward. The referred customer must make 3 separate qualifying cashback purchases. Each purchase must have at least $20 eligible spend, and the total eligible spend across the 3 purchases must be at least $100. All 3 purchases must successfully track and be confirmed. Cancelled, returned, reversed, fraudulent, duplicated or otherwise ineligible transactions do not qualify. Only one referral relationship is allowed per new customer. Self-referrals, duplicate accounts and referral abuse are ineligible. Standard merchant exclusions and Kick Cashback terms apply. The referral reward may be issued at most once for the eligible referral relationship and ruleset version. Retried or repeated processing must not issue a duplicate reward. The $10 first-purchase component may be issued at most once for the customer account and ruleset version. The additional $20 component may be issued at most once for the customer account and ruleset version. The referral reward and new-member sign-up offer are separate promotions. A referred customer does not receive a separate referral reward under the current referral structure, but may remain eligible for the standard new-member sign-up offer under its own terms. The offers do not automatically stack beyond those stated terms. Eligible referral relationships successfully created before 12:00 am AEST on 8 September 2026 permanently retain the existing $20 referral bonus terms that applied when the relationship was created, even if qualification occurs later. Referrals successfully created at or after the cutoff use Referral Program Terms v2.0. Rewards already earned or pending under earlier terms are not changed, recalculated or revoked. Referral rewards, sign-up credits and purchase cashback can arise from different activities and should not automatically be treated as the same thing for tax purposes. Repeated or organised referral activity can also have a different character from an occasional consumer reward. Seek tax advice where the amounts are material or connected with a business or income-producing activity.
Frequently asked questions
Is cashback taxable income in Australia?
ATO TD 1999/34 says a reward under a consumer loyalty program resulting from private expenditure is not assessable income. Business-related or other cashback arrangements can have different treatment, including possible recoupment rules. This is general information only; ask a registered tax agent about your circumstances.
Do I need to declare Kick Cashback earnings on my tax return?
For ordinary private consumer rewards, ATO TD 1999/34 provides relevant guidance that qualifying consumer loyalty rewards from private expenditure are not assessable. If the cashback relates to business or income-producing expenditure, or you earn referral or promotional amounts systematically, get tax advice rather than relying on the private-consumer rule.
How is GST handled on cashback for businesses?
There is no safe one-size-fits-all rule for every cashback structure. GST consequences can depend on whether the cashback changes the consideration for the underlying supply and on the contractual arrangement. GST-registered businesses should keep the original tax invoice and cashback record and obtain advice for the specific transaction.
What about cashback received as gift cards or vouchers?
Gift card cashback is generally treated the same way as cash cashback for tax purposes — a reduction in purchase price for personal use, or a reduction in deduction for business purchases. The substance, not the form, matters to the ATO.
Will Kick Cashback issue me a tax summary?
Kick Cashback statements list every cashback transaction with the original purchase reference, date, and amount paid out — sufficient for any tax record-keeping. We don't issue a PAYG summary or tax certificate because cashback isn't income for personal shoppers. Business users can export their statement and reconcile with their accounting software.