Influencer gifting in Australia is legal, but it carries three sets of obligations. Gifted posts must be disclosed as advertising whenever a commercial relationship exists, because the Australian Consumer Law prohibits misleading conduct and the AANA Code of Ethics requires ads to be clearly distinguishable. The ATO treats products received in exchange for content as assessable income at market value. And the ACCC has now fined a brand for telling creators to hide gifting.

The short answer: If a creator receives free product and content is expected in return, treat the post as an ad. Disclose it clearly, put the arrangement in writing, and never edit the creator’s review.

Key Takeaways

  • PhotobookShop paid $39,600 in penalties in March 2026 after the ACCC found it had instructed influencers on 107 occasions not to disclose free products valued at roughly $50-400.
  • Industry press reported the case as the first time the ACCC has fined a business over misleading influencer reviews.
  • AANA Code of Ethics section 2.7 requires advertising to be “clearly distinguishable as such”. Labels like #ad and Paid Partnership pass; “gifted”, Collab and #sp may not.
  • The ATO treats gifted products received in exchange for content as assessable income at fair market value, under the same rules as cash payments.
  • 84% of Australians believe it is important that influencers disclose when content is advertising, according to Roy Morgan research for Ad Standards published in July 2026.

What Counts as Influencer Gifting and Product Seeding?

Gifting means sending a creator free product in the hope they post about it organically, with no fee attached. Product seeding is the same idea run deliberately and at scale: a brand ships product to a list of relevant creators as part of a planned campaign. In both cases the product can be a pure gift with no strings, or an agreed value-in-kind payment where content is expected in return.

That second distinction matters more than most marketers realise. A true no-strings gift, sent cold with no ask, sits at one end. An arrangement where the creator keeps a $300 product on the understanding they will post sits at the other, and the law treats it much like a cash deal. Gifting and seeding sit alongside paid partnerships and UGC production as standard campaign formats, and the same planning discipline applies. If you are mapping out formats, budgets and briefs, our guide to running an influencer campaign covers where seeding fits in the wider mix.

Do Gifted Posts Need to Be Disclosed as Ads in Australia?

Yes, whenever a commercial relationship exists. A gifted product given in exchange for a post is payment, so the resulting content is advertising and must be identifiable as advertising. Non-disclosure exposes the brand to misleading-conduct risk under the Australian Consumer Law, and it breaches section 2.7 of the AANA Code of Ethics, which states that “advertising shall be clearly distinguishable as such”.

The AANA practice note is specific. Where an influencer accepts money or free products or services in exchange for promotion, the relationship must be clear, obvious and upfront to the audience. Acceptable labels include #ad, Advert, Advertising, Branded Content, Paid Partnership and Paid Promotion. Labels that may not be sufficient include #sp, Spon, Affiliate, Collab, “thanks to…” and, notably, “gifted”. Merely tagging the brand does not count either.

That last point trips up a lot of campaigns. “Gifted” feels like honest disclosure, and creators use it constantly. Under the AANA guidance it may not be enough on its own, because audiences do not reliably read it as advertising. AiMCO, the Australian Influencer Marketing Council, reinforces the point: its Influencer Marketing Code of Practice covers advertising disclosure, and it publishes a Guide to Gifting and a one-page Ad Disclosure summary for brands and creators.

Audiences care about this too. Roy Morgan research for Ad Standards, published in July 2026, found 84% of Australians believe it is important that influencers disclose when content is advertising. The same survey of 1,006 Australians found 83% are familiar with influencer marketing and 57% encounter it daily. Disclosure sits within a broader shift in Australian regulation, and our rundown of the new social media laws in Australia covers that wider picture.

What the ACCC’s PhotobookShop Fine Means for Brands

In March 2026 the ACCC issued two infringement notices to Tomsem Consolidated Pty Ltd, trading as PhotobookShop, which paid $39,600 in penalties. Between August 2024 and September 2025 the company engaged influencers to review products such as photobooks, canvases and puzzles valued at roughly $50-400, and on 107 occasions instructed them not to disclose they had received the product free.

The second notice is the one every brand should study. PhotobookShop edited an influencer’s video review to remove negative comments (the influencer had called a tool “a bit fiddly” and “a bit confusing”) and posted the edited version without disclosing the changes. The ACCC’s position was blunt: “Businesses must not mislead consumers by posting misleading reviews or failing to disclose when an influencer has been paid to create social media content, whether that payment is free gifted products or services, or money.”

Two details deserve attention. First, Mediaweek reported the case as the first time the ACCC has fined a business over misleading influencer reviews, which makes it a marker for future enforcement rather than an outlier. Second, the investigation began when an influencer reported the brand’s non-disclosure request to the ACCC. Creators are the people most likely to report a brand that asks them to hide a gift.

The lessons write themselves. Never instruct a creator to skip disclosure. Never edit a review, and never repost a trimmed version as if it were the original.

How Are Gifted Products Taxed in Australia?

For creators, gifted product received in exchange for content is generally assessable income at its market value. The ATO’s guidance on bartering states that “barter transactions are assessable and deductible for income tax purposes to the same extent as other cash or credit transactions”, and the ATO accepts fair market value, normally the cash price the taxpayer would charge a stranger, when valuing barter payments.

The ATO has said this plainly in creator-facing guidance as well. Its tax tips for social media influencers and content creators note that income is more than money and includes “products you’ve been given to promote like clothing or make-up”. Non-cash benefits such as products or services must be declared as income.

For brands, the tax side is mostly a records and honesty exercise. Keep a register of what was sent, to whom, and at what value. Brief creators honestly about the product’s worth rather than understating it, and never suggest a creator can treat an in-exchange product as tax-free. This is general information, not tax or legal advice. Creators should speak to a registered tax professional about their own circumstances, and brands with complex arrangements should do the same.

How to Run a Compliant Gifting Campaign

A compliant gifting campaign comes down to six habits: a written agreement, a disclosure requirement in the brief, approved labels, honest product values, good records, and hands off the creator’s content. None of them is expensive. All of them are cheaper than an infringement notice, and each one was missing in the PhotobookShop case.

Here is how that looks in practice.

  1. Put it in writing, even for gift-only sends. A short agreement covering disclosure, content expectations and usage rights protects both sides. Our guide to influencer contracts and usage rights covers what to include.
  2. Require disclosure in the brief. State it as a condition of receiving the product, name the platform tools you expect (such as the paid partnership label) and give the exact wording.
  3. Specify approved labels. #ad, Paid Partnership, Branded Content. Do not let “gifted” or a brand tag carry the load alone.
  4. State the product’s market value honestly. It anchors the creator’s tax records and your own.
  5. Keep records. Who received what, when, at what value, under which brief.
  6. Never touch creator reviews. No edits, no trims, no selective reposting. If a creator says a product is fiddly, that candour is what makes the format credible.

Frequently Asked Questions

Is #gifted enough to disclose a free product?

Probably not on its own. The AANA practice note lists “gifted” among labels that may not be sufficient, alongside #sp, Spon, Collab, Affiliate and “thanks to…”. Clearer options include #ad, Advert, Advertising, Branded Content, Paid Partnership and Paid Promotion. When in doubt, use the platform’s paid partnership tool plus a clear label.

Does the ACCC really fine brands over gifting issues?

Yes. PhotobookShop paid $39,600 in March 2026 over two ACCC infringement notices: one for instructing influencers on 107 occasions not to disclose free products, one for editing a video review to remove negative comments. Mediaweek reported it as the ACCC’s first fine over misleading influencer reviews.

Do creators pay tax on gifted products?

Where product is received in exchange for content, yes, generally at market value. The ATO treats barter transactions as assessable to the same extent as cash transactions, and its creator guidance says income includes “products you’ve been given to promote”. Individual circumstances vary, so creators should confirm their position with a registered tax professional.

Can a brand repost an edited version of a creator’s review?

No. PhotobookShop’s second infringement notice was for exactly this: the company removed a creator’s comments that a tool was “a bit fiddly” and “a bit confusing”, then posted the edited review without disclosing the changes. Repost reviews as delivered or not at all.

Who enforces influencer gifting rules in Australia?

The ACCC enforces the Australian Consumer Law’s prohibition on misleading or deceptive conduct. Ad Standards handles complaints under the AANA Code of Ethics, including section 2.7 on distinguishable advertising. AiMCO sets industry best practice through its Influencer Marketing Code of Practice. The ATO handles the tax side.

Where Gifting Fits Inside a Managed Campaign

Product seeding works best when it is run like a campaign, not a mailout. That means creator selection with intent, a brief that makes disclosure a condition rather than a suggestion, agreements in writing, and a record of every unit shipped. Handled that way, influencer gifting is one of the most cost-efficient formats in Australian marketing, and the compliance load stays light.

At Australia Experiences we manage gifting and product seeding as one of the campaign formats we run end to end for Australian brands, alongside paid partnerships and UGC production. We coordinate the creators, the briefs, the disclosure requirements and the records, so brands get the content without the compliance guesswork. If a gifting campaign is on your roadmap and you want it run properly from the first parcel, talk to Australia Experiences.

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