As tax time approaches in Australia, CPA Australia has issued a warning regarding misleading information disseminated by financial influencers on social media platforms. With tax returns due between July and October, the accounting body cautions that some influencers are promoting dubious tax deductions that could lead to severe consequences for unsuspecting viewers.
Jenny Wong, CPA Australia’s tax adviser said that there is a danger in thinking that financial influencers all give expert guidance. She empathized with the struggle that many of us feel tempted by, the allure of the big influencer follower counts. She cautioned that their recommendations tend to be deceptive and untrustworthy.
The reality is that in most instances the advice shared by these accounts is downright incorrect. Wong said that for these claims, there is some kernel of truth. They’re limited to an extremely small percentage of workers.
The Australian Taxation Office (ATO) has also chimed in, emphasizing that submitting false tax claims can result in hefty fines, criminal records, or even imprisonment. ATO Assistant Commissioner Rob Thomson went right to the heart of the matter. Some people will attempt to make questionable deduction claims, he stressed, only legitimate expenses are eligible if they meet rigorous criteria.
“While some people have tried their luck with unusual work-related deduction claims, most people realize to be able to claim an expense, it needs to meet strict criteria.” – Rob Thomson
Social media is filled with influencers promising you the moon and stars. They’re advertising pets as protective dogs for working from home and claiming that designer handbags can serve as laptop carriers. Furthermore, some so-called influencers have charged fuel costs of thousands of dollars without any receipts to back up their fraudulent claims.
Wong cautioned against being influenced by creators who might oversell the promise of viral claims to get more PR spin. Some finfluencers do hype up the possibilities of these misleading claims just to get them more attention and likes. This is not serious advice. It should be ignored,” she stated.
The ATO have provided much-needed clarification on key model guidelines. For example, you can’t deduct personal expenses such as commuting or childcare just because they’re related to work.
“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.” – Rob Thomson
