Scrolling through social media these days, it’s hard to miss the endless money tips, tax “hacks” and investment advice popping up in your feed. These posts often come from so-called financial influencers – or “finfluencers” – who make managing your money sound quick, easy and foolproof.

But when it comes to tax advice, following the wrong voice online can be risky.

Be careful who you take tax advice from online

The Tax Practitioners Board (TPB) has recently sounded the alarm about the growing number of so-called “finfluencers” on social media. These are influencers on platforms like Facebook, Instagram and TikTok who share financial and tax tips with their followers.

While some of this content may sound convincing (and rack up plenty of likes), the problem is that many finfluencers don’t actually have the qualifications needed to give proper tax advice. They also don’t always share the full picture – which can lead to people making decisions that end up costing them thousands of dollars.

Another thing to keep in mind is how finfluencers make their money. Often, they’re paid by companies to promote financial products. Those products may not be right for you, and the finfluencer may not fully understand – or explain – the risks involved.

When it comes to tax advice, following the wrong voice online can be risky.

Damian Knoblanche, Director

How to protect yourself

If you’re getting help with your tax affairs or relying on tax advice, it’s important to make sure the person you’re dealing with is registered with the Tax Practitioners Board. You can easily check this by searching the TPB Register at tpb.gov.au.

The TPB is very clear that, not only must tax practitioners registered with the TPB be fully-qualified to give tax advice and prepare tax returns, but they must also possess professional indemnity insurance — a consumer protection device to cover their clients if they suffer a loss due to an error or omission as a result of tax agent services. That's a level of protection you’re very unlikely to get from a 'finfluencer'.

The Tax Practitioners Board's key tips for dealing with finfluencers

The TPB offers some practical advice to help taxpayers stay safe:

• Double-check tax advice on the Australian Tax Office website at ato.gov.au, which is the most reliable source of up-to-date tax information.
• If it sounds too good to be true, it probably is. Be cautious about “tax hacks” or shortcuts that promise big savings.
• Be wary of “free expert advice”. When it comes to tax, it’s always safer to speak with a registered tax professional.
• Protect your personal information. Avoid websites or individuals asking for sensitive details like your TFN, identity documents or myGov login.
• Report concerns. If someone is offering tax advice and you’re worried about their conduct, you can lodge a complaint with the TPB.

The bottom line

Social media can be a great place for ideas and general information – but when it comes to tax or investing advice, getting it wrong can be costly. Before acting on anything you see online, make sure it’s accurate, verified and coming from a properly registered professional.

If you’d like peace of mind or tailored advice for your situation, we’re always here to help.