They are all over your Instagram and TikTok feeds, and they have huge followings, these are the so-called financial influencers, or “finfluencers”. While their advice might seem correct, we urge you to be cautious. Relying on unqualified sources can lead to serious consequences.

We have already seen examples of misleading claims, exaggerated deductions, and outright misinformation. Trusting this advice could not only cost you money but also put you at risk of ATO penalties, fines, or, in the worst case, prosecution.

What is the Issue?

Many finfluencers earn money by promoting financial products for companies, which means they might not have your best interests in mind when sharing advice. They are often not qualified to provide tax or financial guidance, so it’s unrealistic to expect reliable, personalised information. Unfortunately, some influencers are spreading tax “hacks” that are either completely false or only applicable in very specific cases.
The ATO and professional accounting bodies have already raised alarms about several false claims, including:

  • Claiming your pet as a work-related guard dog
  • Writing off luxury handbags as laptop bags
  • Deducting fuel costs without proper documentation
  • Trying to claim swimwear as a work uniform

These ideas might sound believable, but following them could lead to serious trouble. The ATO uses advanced data-matching tools to detect suspicious or inflated claims. If your deductions don’t meet legal standards, it could trigger an audit. If mistakes are found, the consequences could include:

  • Higher tax bills
  • Interest charges
  • Fines
  • A criminal record and, in the worst cases, imprisonment
    Don’t let bad advice ruin your financial future. Always seek qualified guidance before making tax decisions.