Source: ATO
As tax time approaches, the ATO has cautioned Australians to be wary of information from third-party sources, such as AI platforms and financial influencers.
Taxpayers should be cautious of incorrect or misleading information being spread at tax time, particularly claims promising greater refunds, shortcuts or hacks. In a recent release, the ATO warned that it’s seeing a rise in tax-related content and ‘tips’ being shared, especially online, and urged taxpayers to treat unverified advice with caution.
ATO Assistant Commissioner said Australians should think twice before acting on information from third-party sources such as artificial intelligence platforms, financial influencers, or even advice from family or friends. “AI can be helpful, but it often draws from a broad and inconsistent range of sources, which can lead to inaccurate advice.”
As an example, it could be drawing content about tax obligations or laws from outside of Australia or outdated sources. Your tax return isn’t the place for guesswork.
In an environment where misinformation can spread within minutes, it’s important that taxpayers pause and check their tax information before they act on it, such as when they go to lodge their tax return. “If a tax claim sounds too good to be true, it’s worth checking.”
Taxpayers who have questions about the legitimacy of tax information should refer to the ATO’s website, the ATO app or speak to a registered tax professional. Tax misinformation often sounds convincing, but dodgy tax advice doesn’t just mislead, it can also result in significant penalties.
Taxpayers remain accountable for ensuring the information they or their agents provide to the ATO is accurate – whether the advice came from a friend, online sources, or if AI tools were used in its preparation. Getting it right upfront prevents delays, incorrect claims and the need for amendments or worse, ATO compliance action.
The ATO have also reminded taxpayers that work-related expenses must relate to earning income, spending the money themselves and being able to support claims with records such as receipts, invoices or logbooks. The ATO said taxpayers should also ensure they declare all sources of income on their tax return including side-hustles, cash jobs, interest and rental income.
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AI is powerful & can be used for guidance however, it should never be your sole reason for tax deductibility. We are more than happy to provide guidance where needed.