The Australian Taxation Office warned taxpayers not to rely on social media 'finfluencers' or artificial‑intelligence tools for tax advice, highlighting the risk of outdated or inaccurate information. While more than 6.1 million Australians used the MyTax platform in 2025, the ATO stresses the need for accurate income reporting and warns of penalties for missed deadlines or unverified deposits.
This year, the Australian Taxation Office has warned against relying on “tax hacks” from “finfluencers”. More than 6.1 million Australians did their own tax online with ATO's MyTax tool in 2025.
Tax time is coming — and with it, the unfortunate reality of needing to do something to get ready. Don’t put your head in the sand and ignore it. That’s how you can end up missing the 31 October deadline and potentially end up with fines and penalties. This year, the Australian Taxation Office has warned against relying on online tips or “tax hacks” from “finfluencers”: financial influencers on social media.
It’s also warned artificial intelligence platforms can draw from outdated, inaccurate or foreign sources — so using them for your tax can be risky. Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox. Luckily, the ATO has been improving its online tax tools, so lodging your tax yourself is not as daunting as it once was.
More than 6.1 million Australians did their own tax online with MyTax in 2025. But doing your own tax has been a steadily growing trend for more than a decade, as more people realise the ease of using MyTax. As a taxpayer, you have the obligation to tell the ATO what you have earned — even if you think you don’t have to pay any tax.
The tax office collects more than 600 million transactions annually from various third parties. Sometimes they share the information with you — such as when they pre-fill sections of your MyTax form — but sometimes they don’t. While articles like this about tax time often focus on claiming deductions, being transparent about your income is non-negotiable. If you have deposits in your bank account, can you explain where those came from?
If not, the ATO may deem that those deposits were income. Then it is up to you as the taxpayer to prove otherwise. When you get to your deductions, there are three “golden rules” to remember:Your spending must be directly related to earning your incomeIf you are claiming working from home, there are two options to reduce your tax bill: the fixed rate or actual cost approaches. The $0.70 per hour fixed-rate method is much simpler.
For most people doing their own tax, it’s the one you’re more likely to use. And the fixed-rate method includes common expenses such as phones and stationery, so don’t double dip by claiming those separately. You cannot claim rent or interest for working from home, unless your home is an actual place of business, such as a doctor’s surgery or hair salon. Similarly, you cannot claim everyday clothing.
To claim a deduction on clothing, it needs to be occupation specific, protective , a compulsory uniform or a registered non-compulsory work uniform. You cannot claim private travel. This includes driving to and from work, or commuting on public transport. There are very limited exceptions.
Don’t just rollover your claims from last year, either. What have you actually spent this year — and have you got the receipts to back it up?relevant for this tax season. Those are due to start from next financial year and beyond, assuming they’re passed by parliament. Taxpayers should lodge when required.
Think Goldilocks here: not too soon — and not too late. If you try to do it too early, ATO data matching may not be complete. Generally, that’s done by around end of July. You’re better off waiting until all the information is there, otherwise the ATO is likely to amend your return.
You can either lodge yourself or use a registered tax agent. Expecting a tax refund? You’re better off lodging earlier, from late July on. For simple, self-lodged tax returns, you can generally expect to get a refund within about two weeks.
So that means you’ll have more money in your bank account sooner. Expecting a tax bill? That’s when you’re better off lodging just in time: by 31 October if you’re submitting yourself, or making sure you have a tax agent locked in by then. The ATO provides a variety of guidance and advice to support taxpayers, while tax agents can help you to pay the right amount of tax.
Be careful of unregistered tax agents, particularly those tax “influencers” offering huge refunds. If you’re unsure, check this official register.give out your login details to myGov or myTax. Registered tax agents will never ask for your passwords. And if you’re having difficulties meeting your tax obligations, or are unable to lodge on time, contact the tax office or a registered tax agent as soon as possible.
Disclaimer: This is not tax advice, it is for educational purposes only. Taxpayers should seek advice from a registered tax agent or suitably qualified professional. Elizabeth Morton is a senior lecturer at Curtin University. Morton has previously been contracted to co-facilitate a short-term training contract for tax and crypto facilitated by UNSW for the ATO and is currently a member of the ATO's Crypto Industry Working Group.
This is unrelated to this article. Elizabeth has not received grant funding directly related to the content of this article. Elizabeth is a chartered accountant, a fellow of the Tax Institute and a member of the Institute of Public Accountants. Lisa Greig is a lecturer in taxation law for accountants at The University of Melbourne.
Greig has previously been contracted to co-facilitate a short-term training contract for tax and crypto facilitated by UNSW for the ATO. Lisa has not received grant funding directly related to the content of this article. Lisa is a fellow of the Chartered Accountants Australia and New Zealand, a chartered tax adviser with the Tax Institute and a fellow of the Institute of Public Accountants. Lisa volunteers at the Melbourne Law School Tax Clinic.
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