Ignore TikTok advice from ‘finfluencers’ when it comes to doing your taxes, says CPA Australia

Taking tax advice from ‘finfluencers’ is just downright wrong, says CPA Australia. Photo: Anna Shvets / pexels.com

If a finfluencer (finance influencer) says you can claim your dog as a work expense, it’s time to put down your phone, says Australia’s peak accounting body CPA.

With the end of financial year upon us (Monday, June 30), CPA Australia says taking tax advice from social media (especially TikTok) is just plain bad.

Their advice follows TikTok finfluencers (some with large followings) making outrageous claims about potential work-related tax deductions such as:

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 says it is a concern that so many people watch their 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 says.

Wong lists an example: some farmers may be able to claim expenses related to their sheep dogs but a dog owner in a major city claiming 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. 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,” Wong says.

ATO has four key focus areas. "We know there is still some weeks left until tax time, but if you start organising the income and deductions records you’ve kept throughout the year, this will guarantee you a smoother tax time and ensure you claim the deductions you are entitled to," said Mr Loh.

“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 tax system.”

Wong explains that following bad tax advice could result in missing out on legitimate entitlements, 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.”

Wong’s warning extends to ChatGPT and other OpenAI tools which should also be treated with caution.

“Nothing can beat the sound advice of a professional tax agent,” she says.

“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.”

CPA Australia is a leading professional accounting body with more than 175,000 members in over 100 countries and regions.

TAX TIPS

Be thorough: Take time to gather all evidence to support your work expense claims.
Check what type of expenses you could claim that are relevant to your work.
Time running out: You have until June 30 to buy 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.

Source: CPA Australia