As the end of the financial year approaches, CPA Australia is urging Australians, especially small business owners and real estate professionals, to ignore misleading tax advice spreading across TikTok and other social platforms.
The warning comes after a string of dubious “finfluencer” videos claiming that extravagant or outright ineligible deductions can be used to reduce tax bills.
CPA Australia Tax Lead Jenny Wong says the growing popularity of tax advice from social media influencers is concerning, particularly given that many claims being shared are either completely false or so specific that they apply to only a tiny subset of taxpayers.
“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.”
One example cited involved influencers encouraging people to claim designer handbags as work laptop bags.
“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,” Ms Wong said.
She added that some content creators exaggerate the potential for claims in order 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.”
Following inaccurate advice could not only result in taxpayers missing out on legitimate deductions but could lead to serious legal consequences.
“The ATO uses data-driven profiles to identify which claims are realistic and which look like complete nonsense,” Ms Wong explained.
“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.”
Ms Wong also extended her caution to include AI-generated tax tips, noting that while tools like ChatGPT can be helpful for general information, they lack the nuanced understanding required for Australia’s complex tax system.
“Nothing can beat the sound advice of a professional tax agent,” she said.
“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.”