Beware of 'Finfluencers': CPA Warns of Tax Risks from Social Media Financial Advice

Australians are being warned to avoid taking financial advice from social media influencers, also known as 'finfluencers,' due to the risk of serious tax implications. The CPA Australia has issued a warning, highlighting the dangers of relying on potentially inaccurate and misleading information shared online. According to the CPA, many finfluencers offer advice without the necessary qualifications, leading to incorrect tax filings and potential penalties. The video showcases examples of such advice, including claiming a pet as a guard dog or a designer bag as a work expense, which are not legitimate deductions. "This is not serious advice and should be ignored," stated a CPA representative. The ATO is also on notice, with potential penalties for finfluencers offering unlicensed financial advice including up to five years in prison and a $1 million fine. Experts advise Australians to seek advice from qualified financial professionals instead of relying on social media.