As the use of generative AI tools grows across Australia, financial professionals and the Australian Taxation Office (ATO) are raising red flags about relying on such platforms for help with tax returns, deductions, and financial compliance. 

With 17% of Australians already using AI tools for financial management, concerns are growing among tax professionals and bookkeepers about the increasing reliance on unregulated AI-generated tax advice—much of which may be inaccurate or misleading due to the platforms being U.S.-based or international, not tailored to Australian tax law.

Key Points:

1. AI tools may provide incorrect advice, especially on work-related deductions or tax return eligibility.

2. Taxpayers remain fully responsible for the accuracy of information submitted to the ATO.

3. The ATO urges people to use official resources like ato.gov.au, myTax, or contact a registered tax professional.

4. H&R Block's Mark Chapman warned that self-lodgers are particularly vulnerable and should use AI cautiously, if at all.

5. A Sky News test showed that platforms like ChatGPT and Meta AI gave general advice, not always specifically tailored to Australian tax law.

While AI use is growing, the ATO emphasizes that nothing replaces advice from a qualified tax expert. Relying on AI could lead to incorrect lodgements, audits, or penalties.

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