- Some finfluencers (finance influencers) are posting misleading information about tax deductions
- Don’t rely on online tax tips (and yes, that includes ChatGPT)
- Tax is complicated, not one-size-fits-all: expert advice is recommended
If you see a TikTok account suggesting you can claim your dog as a legitimate work expense this tax time, it’s probably time to put down your phone, says CPA Australia.
With the end of financial year approaching, CPA Australia is warning that taking tax advice from social media platforms, especially TikTok, is a bad idea.
CPA Australia has seen numerous examples of TikTok finfluencers – some with large followings – making outrageous claims about potential work-related tax deductions.
They include:
- Claiming expenses for your pet as a guard dog while you work from home
- Claiming a luxury designer handbag as a work laptop bag
- Claiming thousands of dollars in fuel costs without needing receipts
CPA Australia Tax Lead, Jenny Wong, said it’s concerning that many Aussies will watch this content and assume they are getting free expert advice.
“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.”
Ms Wong said following bad tax advice could result in missing out on legitimate entitlements or, worse, big fines or prosecution.
“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.”
Ms Wong extends her warning to include ChatGPT and other OpenAI tools which should also be treated with caution.
“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.”
Work-related tax tips:
- Be thorough: Take time to gather your receipts, logbooks and any other evidence to support your work-related expense claims.
- Check what type of expenses you could claim that are relevant to your work. The ATO has a comprehensive guide to industry and occupation types.
- Time is on your side. You have until June 30 to purchase any items you need for work and can claim the deductions this year.
- Don’t rush. Lodging your tax return early does not mean you’ll get your refund first, but could mean you make mistakes.
- Remember: the cost of seeking professional tax advice for your tax return is tax deductible.
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