Fool’s Gold? The Real Cost of Finfluencer Tax Tips
Golden Advice or Fool’s Gold? The Real Cost of Tax Tips from Finfluencers
Social media is full of ‘quick tips’ and tax hacks. But when it comes to financial advice, following the wrong influencer could cost you thousands.
The rise of financial influencers—or finfluencers—on TikTok, Instagram and YouTube may feel like a gold rush of information. But beware: beneath the glimmer often lies dangerous advice.
What Is a Finfluencer?
A finfluencer is someone who shares financial content online, usually without formal qualifications. They may post about tax tips, business structures, or even investment products—often without being a registered tax agent or financial adviser.
While some may genuinely want to educate, many are paid to promote financial products or services. That means their top priority isn’t your business—it’s brand deals and commissions.
“Using an unregistered tax practitioner can cost thousands of dollars in tax bills and penalties.”
– Michael O’Neill, Chair of the Tax Practitioners Board
Why This Matters: The Real Risks
Taking financial advice from someone who isn’t qualified can result in:
- Overstated deductions
- Missed tax entitlements
- Incorrect business structures
- ATO audits or penalties
The Tax Practitioners Board (TPB) warns that using an unregistered preparer leaves you legally responsible for any errors, no matter how well-intentioned the advice. You’ll also forfeit “safe harbour” protection—a safeguard that reduces penalties if a registered agent makes a mistake.
Why Registered Tax Agents Are Worth Their Weight in Gold
Registered tax agents are licensed through the TPB and must meet strict education, experience, and ethical standards. They are also required to:
- Stay up to date with tax law changes
- Hold professional indemnity insurance
- Act in your best interest
- Maintain your privacy and data security
Only registered agents can legally charge a fee to prepare and lodge your tax return in Australia. You can verify their credentials using the TPB Register.
This level of protection simply doesn’t exist with a finfluencer—no matter how confident or convincing they sound.
Red Flags: How to Spot Fool’s Gold
Beware of:
- Promises of “huge refunds” without knowing your circumstances
- Free tax tips from people with no formal qualifications
- Requests for your myGov login or Tax File Number
- Claims that sound “too good to be true”
If it looks like gold but comes with risk and no accountability—it’s not the real thing.
Trust the Experts, Not the Algorithm
The best place to start for any tax or finance question is the ATO website.
From there, talk to a qualified tax adviser who can tailor guidance to your business. DIY finance may seem easy—but it often leads to costly corrections down the line.
For example, many businesses miss out on legitimate deductions simply because they don’t know what to claim. A registered agent can help identify opportunities while keeping you compliant. See more on allowable deductions in relation to managing tax affairs here.
The Golden Rule: Protect Your Business
Your business is too valuable to gamble on advice from someone unqualified. Finfluencer content might be shiny, but it’s often shallow—and you could pay the price in penalties, stress, or lost cash.
At DJ Grigg Financial, we’re registered, qualified, and committed to supporting your success. Our advice is built on real experience—not social trends.
Ready to turn solid advice into real results?
Contact us today for tailored, trustworthy tax and business support that’s truly worth its weight in gold.