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Complaint to ATO over $2k Sam Smith concert, accommodation packages given to social media influencers

Despite claims the January concert generated $32m for SA, the exclusive guest list caused a huge stir – prompting one man to write a complaint that ended up with the tax office.

The d'Arenberg cube will finally be open for summer

A complaint over gifts to 35 high-profile social media influencers has been referred to the ATO over the Sam Smith concert and accommodation packages worth $2000.

The singer performed in January at an invitation-only show for competition winners, celebrities and influencers at the d’Arenberg Cube as a taxpayer-funded tourism pitch.

A complaint over the gifts – funded from a pool of $500,000 of taxpayer funding for the concert – has been referred to the ATO among a wider discussion about influencers paying tax on such benefits.

Despite state government claims of a $32 million economic promotional boost from the funding, in January the concert faced a backlash over the exclusive guest list.

The scandal prompted one Adelaide man to write a complaint, which the ATO has confirmed was passed on from the Treasurer.

The complainant did not want to be named but provided his letter of complaint.

He wrote to the Federal Treasurer’s office, but was not given a direct response.

British singer Sam Smith's exclusive show at the d’Arenberg Cube in McLaren Vale on January 11. Picture: Ben Clark
British singer Sam Smith's exclusive show at the d’Arenberg Cube in McLaren Vale on January 11. Picture: Ben Clark

Instead the ATO replied that it had been passed on to them.

No action has been taken against the influencers and there is no suggestion of any wrongdoing by them.

The complaint stated: “I suggest you make inquiries with the Premier of South Australia as to which influencers attended this exclusive concert and follow these people up as part of the ATP crackdown covered nationally by News Corp newspapers in January this year”.

The ATO refused to tell The Advertiser how many such letters of complaint to the Minister were referred on, but a spokesman said: “The ATO carefully considers the correspondence received and aims to resolve matters that are raised”.

“Full details of the economic benefit are still being collated, but the event is estimated to have attracted an Advertising Value Equivalent of more than $32 million, and resulted in a potential global audience reach of 1.58 billion,” a state government spokeswoman said.

Opposition spokeswoman on government accountability Michelle Lensink said the Sam Smith concert splurge was an ongoing problem for the government and was likely to have cost far more than the $500,000 claimed.

Ms Lensink said the government should explain how it had calculated the promotional benefits from the spending, which had been estimated at $14 million but on Wednesday were said to be worth $32 million.

“If the ATO comes knocking, Peter Malinauskas will have no choice but to come clean because we know Labor likely spent millions in taxpayer dollars to gift influencers flights, accommodation, meals, transfers, Sam Smith tickets and booze for free,’’ she said.

Meanwhile Freedom of Information documents released to the ABC show the influencers were, in exchange for the gifts, required to make two or three positive posts on their accounts in favour of South Australia.

The ABC reported on Wednesday that some may not have complied with the promotional directions, and it costed the value of the accommodation, food, drink and ticket package at $2000.

Originally published as Complaint to ATO over $2k Sam Smith concert, accommodation packages given to social media influencers

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Original URL: https://www.ntnews.com.au/news/south-australia/social-media-influencers-face-ato-probe-over-gifted-sam-smith-concert-accommodation-packages-worth-2000/news-story/cd0d98bb9ef7b039bb76aa7b4ed9de50