Tim doesn’t fully understand how tax works. He’s not sure he’s doing the right thing but he’s told ‘everyone does it’ and it’s ‘just part of being a content creator’. He follows the chat group advice and registers for goods and services tax (GST). He later lodges a business activity statement (BAS) claiming a large GST refund.

At the end of the financial year, Tim lodges his tax return.

A few weeks later, Tim receives a letter from the ATO asking him to provide evidence to support his GST claim and his deductions for rent and car expenses. Tim panics. He has no records, no receipts and doesn’t really understand what he’s submitted.