Finfluencers and Tax Advice: A Risky Combination

With financial content booming on platforms like Instagram, YouTube, and TikTok, it’s no surprise that many Australians are turning to social media for money advice. But while some of this content can be useful, there’s growing concern about the rise of “finfluencers” – influencers offering tax or investment tips without the proper qualifications.

The Tax Practitioners Board (TPB) and the ATO have both issued warnings about unqualified individuals giving potentially misleading or illegal tax advice online. Common examples include claiming personal items like handbags, gym memberships, or even pets as tax deductions, despite no legal basis for such claims. While these tips may be dressed up as clever tax “hacks,” acting on them could land you in serious trouble.

Following bad advice can result in audits, amended assessments, back taxes, interest charges, and even penalties. The ATO’s data-matching capabilities mean they can quickly identify and investigate questionable deductions. In more severe cases, criminal charges may apply for deliberately misleading tax claims.

If something sounds too good to be true, it probably is. Always verify any tax or financial advice with a registered tax agent or accountant. You can check a practitioner’s registration status via the TPB website. Before you rely on advice from a social media post, reach out to someone qualified who understands the legislation and can apply it to your specific situation.

For expert guidance on what you can and can’t claim, our team is available to help. Contact us on 1800 618 800 or email admin@simmonslivingstone.com.au  to get personalised, professional advice you can trust.