Finfluencers: Bad Tax Advice and how it could cost you thousands

We’re seeing examples of misleading claims, exaggerated deductions and outright misinformation. Relying on this advice could not only leave you out of pocket but also expose you to ATO penalties, fines or in the worst case scenario - prosecution.

What's the problem?

Many finfluencers make money by promoting financial products on behalf of companies, which means that they don’t necessarily have your best interests in mind when sharing information or insights. Finfluencers aren’t always qualified to provide advice on tax or financial products. You just can’t expect to receive solid, reliable or tailored guidance. Unfortunately, we’re seeing some influences share tax hacks that are either completely false or apply only in extremely limited situations.

The ATO and some of the accounting professional bodies have sounded the alarm on some recent false claims, including:

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

These kinds of suggestions might sound plausible but following them could get you into serious trouble. The ATO uses sophisticated data matching tools to detect suspicious or inflated claims. If your deductions don’t meet the legal criteria, this could trigger an audit and if mistakes are found, the consequences can include:

• An increased tax liability
• Interest charges
• Fines
• A criminal record and in the most serious cases, imprisonment

Here’s how to stay safe and tax smart:

• If it sounds too good to be true, it probably is. Dodgy deduction tips on social media are best ignored, at least until they can be verified.
• Stick to trusted sources. For official tax guidance, visit ato.gov.au.
• Don’t risk your business or personal reputation for a quick deduction. 

If you aren’t sure, please reach out to us and we can help you stay compliant, no filters or hashtags!

DISCLAIMER:

Liability limited by a scheme approved under Professional Standards Legislation.

The content of this newsletter is general in nature. It does not constitute specific advice and readers are encouraged to consult their Ruddicks adviser on any matters of interest. Ruddicks accepts no liability for errors or omissions, or for any loss or damage suffered as a result of any person acting without such advice. This information is current as at 31 July 2025, and was published around that time.  Ruddicks particularly accepts no obligation or responsibility for updating this publication for events, including changes to the law, the Australian Taxation Office’s interpretation of the law, or Government announcements arising after that time. 

Any advice provided is not ‘financial product advice’ as defined by the Corporations Act.  Ruddicks is not licensed to provide financial product advice and taxation is only one of the matters that you need to consider when making a decision on a financial product. You should consider seeking advice from an Australian Financial Services licensee before making any decisions in relation to a financial product.  © Ruddicks 2025