CPA Australia has issued a warning regarding the growing trend of individuals seeking tax advice from TikTok ‘finfluencers’, highlighting concerns over misleading tax deduction claims being circulated on the social media platform.

CPA Australia’s Tax Lead, Jenny Wong, has pointed out that some finfluencers are disseminating incorrect information about tax deductions. “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.

Examples of misleading claims include suggestions that individuals can claim pets as work expenses, use luxury handbags as laptop bags, or claim fuel costs without receipts. “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,” said Wong.

Wong also addressed the issue of claiming designer bags as work-related expenses. “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,” she said.

The rise of finfluencers on platforms like TikTok has led to an increase in exaggerated claims, according to Wong. “Some finfluencers exaggerate the potential for certain claims to garner attention and likes. This is not serious advice. It should be ignored,” she advised.

CPA Australia stresses the importance of seeking tax advice from professional tax agents, given the complexity of the Australian tax system. “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,” said Wong.

The Australian Taxation Office (ATO) is actively monitoring tax claims, utilising data-driven profiles to identify unrealistic claims.

“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 cautioned.

CPA Australia, which boasts over 175,000 members worldwide, offers core services including education, training, technical support, and advocacy. “Nothing can beat the sound advice of a professional tax agent,” said Wong.

The organisation also advised against relying on AI tools for tax advice. “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,” Wong noted.