Key Points
- Accounting body CPA Australia says financial influencers are posting misleading videos about tax deductions.
- Influencers have claimed their dogs are tax deductible.
- Tax time starts in July for Australians.
Some 'finfluencers' (financial influencers) are posting misleading financial information on social media, accountant body Certified Practicing Accountant (CPA) Australia has warned, saying misinformation increases ahead of tax time.
Most Australians will need to submit their tax returns between July and October this year.
But you shouldn't be taking financial advice from online accounts, even if they have large followings, CPA Australia said.
"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," the group said in a statement.
It acknowledged some farmers may possibly be able to claim sheepdogs as an expense but people in a major city, for example, would not.
CPA Australia said some alarming false claims 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 viewers 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.
"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.”
Last week, the Australian Taxation Office (ATO) warned against submitting bogus tax expenses.
ATO assistant commissioner Rob Thomson said exaggerated deduction attempts would not be tolerated.
"While some people have tried their luck with unusual work-related deduction claims, most people realise to be able to claim an expense, it needs to meet strict criteria.
"While a lunchtime dip might clear your head for work, swimwear for a truck driver is clearly not deductible."
If a deduction doesn’t pass the "pub test", it’s highly unlikely your claim would meet the ATO’s strict criteria, Thomson said.
"Don’t fall into the trap of thinking you can claim expenses like travel to and from work and childcare costs. These expenses are personal in nature and cannot be claimed."
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."
She warned: "exaggerating a claim can have consequences".
In Australia, making false tax claims can result in hefty fines, a criminal record or even imprisonment.
