Why “tax hacks" on social media could cost you thousands

Scroll through Instagram or TikTok, and you’ll find no shortage of people giving financial and tax advice. They sound confident, they’ve got big followings, and they make it look easy. But here’s the problem: most of them aren’t qualified, and following their tips could leave you with a bigger tax bill, or worse, penalties from the ATO.

What's going on?

A lot of financial influencers (or “finfluencers”) are making money by promoting products for companies. That means they’re not necessarily thinking about what’s right for you or your business. And when it comes to tax, many of the so-called “hacks” they share are either flat-out wrong or only apply in very limited situations.

Some of the dodgy claims we’ve seen doing the rounds include:

• Claiming your pet as a “guard dog” for your business

• Writing off luxury handbags as laptop bags

• Claiming fuel costs with no logbook or records

• Trying to deduct swimwear as a work uniform

They might sound clever, but the ATO has sophisticated systems that pick up on unusual claims. If your deductions don’t stack up, you could face:

• A bigger tax bill

• Interest and penalties

• An audit

• In extreme cases, even prosecution

What this means for small business owners

If you’re running a trade or maintenance business, the last thing you need is the ATO knocking on your door because of a bad tip you saw online. Every dollar counts in the first few years of business, so it’s not worth risking thousands in penalties just to try and squeeze in a claim that doesn’t actually qualify.

How to protect yourself

• If it sounds too good to be true, it probably is. The ATO has seen it all before.

• Stick to trusted sources. For official guidance, head to ato.gov.au.

• Get tailored advice. Every business is different. What works for one tradie might be completely wrong for another.

The bottom line

Social media isn’t where you should be getting your tax advice. If you want to stay on the right side of the ATO and keep your cash flow healthy, stick to qualified professionals who actually understand your business.

Need help figuring out what you can (and can’t) claim? Let’s talk. We’ll help you stay compliant, no filters or hashtags required.

Bottom line

You don’t need to be “old” to sort this out. Check your super fund today and make sure your nomination is valid and current. It’s one of those simple admin jobs that could save your family months of stress if something happens.

Don’t risk your business on bad advice. Inside the Small Business Foundations Course, we’ll show you how to get tax, BAS, and cash flow right from day one, without the confusion.