The rise of so-called ‘finfluencers’ – influencers who offer financial and tax advice on platforms like Instagram and TikTok – is a growing concern. Many of these individuals lack the proper qualifications, yet provide advice that can lead to significant financial losses for unsuspecting followers.
Why it’s risky
Most finfluencers earn income by promoting financial products from companies. These promotions:
- May not suit your personal financial situation
- Are often not fully understood by the influencer themselves
- Can be misleading or incomplete
Relying on such advice can cause serious financial harm, potentially costing you thousands of dollars.
How to stay safe
If you’re seeking help with your tax affairs or financial advice:
- Always check the TPB Register to ensure the person is a registered tax practitioner: TPB Register
- Registered practitioners must:
- Be fully qualified
- Hold professional indemnity insurance, protecting you in case of errors or omissions
This is a level of protection not typically offered by unqualified finfluencers.
Key tips to protect yourself
- Visit ato.gov.au for the most accurate tax information.
- Be sceptical – if advice seems too good to be true, it probably is.
- Avoid so-called ‘free expert’ tax advice unless it comes from a registered tax practitioner.
- Stay vigilant against websites trying to steal your personal information, including your TFN, identity documents, or myGov login.
- If someone is offering unqualified tax advice, you can submit a complaint to the TPB.
Be smart, be safe – only trust registered professionals with your tax matters.