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CPA Australia has issued a warning about relying on online tax tips after seeing numerous examples of outrageous claims about tax deductions.
TikTok tax advice misleading taxpayers, cautions CPA
14 May 2025
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8 minute read
Taxpayers have been cautioned about some of the misleading claims emerging about work-related deductions on social media platforms as the end of the financial year approaches.
CPA Australia has warned taxpayers against taking advice from these platforms, with some advice completely wrong or only applying to a small subset of taxpayers.
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The accounting body said it had seen many examples of TikTok finfluencers – some with large followings – making outrageous claims about potential work-related tax deductions, such as claiming expenses for a pet as a guard dog while working from home.
Other examples include claiming a luxury designer handbag as a work laptop bag and claiming thousands of dollars in fuel costs without needing receipts.
CPA Australia tax lead Jenny Wong said it was concerning that many Australians watch this 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,” Wong said.
“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.
“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."
Some finfluencers exaggerate the potential for certain claims to garner attention and likes, Wong added.
"This is not serious advice. It should be ignored," she said.
“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.”
Wong warned taxpayers that 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.”
Work-related expenses must be genuinely vital to allow an individual to perform their job properly.
Exaggerating a claim can have consequences, the accounting body cautioned, with false tax claims potentially resulting 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 said.
Wong also said that ChatGPT and other OpenAI tools should be treated with caution by taxpayers.
“Nothing can beat the sound advice of a professional tax agent,” she said.
“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.”
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