Steer clear of finfluencers ahead of tax time: CPA Australia

Professional accounting body, CPA Australia, has warned Australians against consulting online ‘finfluencers’ for advice, information or tips on taxes posted on social media platforms ahead of the end of financial year.

CPA Australia said there has been a significant rise in finance influencers, particularly on social media platform TikTok, posting misleading information or “outrageous claims” about work-related tax deductions this year.

Some examples include:

• Claiming expenses for a pet as a guard dog while working from home
• Claiming a luxury designer handbag as a work laptop bag
• Claiming thousands of dollars in petrol costs without receipts

Jenny Wong, CPA Australia’s Tax Lead, said the circulation of this content and its digestion by countless Australians as “free expert advice” has raised significant concerns.

“In many cases the advice from these accounts is simply wrong. In other cases, the claims have an ounce of truth but would apply only to a very small group of workers,” she said.

“For example, some farmers may be able to claim expenses related to their sheep dogs, but the idea that a dog owner in a major city can claim expenses for a guard dog while they work from home is simply absurd.

“Similarly, many workers can claim the cost of buying a laptop bag. However, we’ve seen TikTok posts suggesting that taxpayers can take advantage of this to purchase expensive designer bags that are clearly not intended for carrying work laptops.

“Some finfluencers exaggerate the potential for certain claims to garner attention and likes. This is not serious advice. It should be ignored.

“Having a large following on TikTok doesn’t automatically make someone an expert on a particular subject, especially one as complex as the Australian tax system.”

Wong urged Australian taxpayers to be mindful of “following bad tax advice”, which could result in missing out on legitimate entitlements or financial consequences. She also cautioned against using other online tools, such as ChatGPT or OpenAI, for tax advice.

“The ATO uses data-driven profiles to identify which claims are realistic and which look like complete nonsense,” she said.

“Work-related expenses must be genuinely vital to allow you to perform your job properly. Exaggerating a claim can have consequences. Making false tax claims could result in hefty fines, a criminal record or even imprisonment. Arguing that you took advice from a finance influencer on TikTok won’t cut it – your tax is your responsibility.

“Nothing can beat the sound advice of a professional tax agent. AI tools are only as good as the information you put into them. It may be tempting to ask AI bots for tips, but they are simply not able to compute the nuances of the Australian tax system or your specific circumstances.”