CPA Australia’s head of tax policy and advocacy priorities, Jenny Wong, has said that, particularly as the 2026–27 federal budget contains some of the “most substantial proposed changes” seen in decades, such as reforms to the capital gains tax and negative gearing, generalised advice from AI and “finfluencers” could lead to expensive mistakes.
“With major changes proposed across capital gains tax, property investment and trust structures, it would be very unwise to rely on generalised advice from social media or AI tools,” she said.
“The rules are becoming more complex and more nuanced. What might appear to be a simple strategy online could have very different outcomes depending on your individual circumstances.”
Wong highlighted the changes to the CGT, which, from July 2027, will introduce a minimum 30 per cent tax on capital gains, as well as the negative gearing limitations and a minimum 30 per cent tax on discretionary tax income from July the following year. She highlighted that the high-profile nature of these changes and how much they have been discussed in the media could result in misinformation and, thus, incorrect or generic advice.
“We’re already seeing social media content and AI-generated responses attempting to interpret these tax reforms in overly simplistic or, in some cases, inaccurate ways,” Wong said.
“Tax law doesn’t operate in headlines or short-form videos – and it certainly can’t be applied correctly without understanding the full detail and how the rules interact.”
She also said that this kind of advice, even when right, does not reflect the needs of Australians and local tax law.
“Whether it’s claims about maximising deductions, restructuring investments, or timing asset sales, the reality is these decisions now require a much deeper understanding of the rules,” she said.
“Relying on generic advice – particularly from overseas sources or AI tools that don’t consider your personal situation – can lead to incorrect claims, poor financial decisions, and unintended tax consequences.”
While she acknowledged that these resources can provide general financial awareness, professional advice and input should be prioritised to prevent costly errors.
“AI tools can provide general information, but they don’t apply judgement, they don’t understand your individual circumstances, and they don’t replace professional advice,” she said.
“Importantly, if you rely on incorrect information and your tax return is wrong, you are the one accountable – not the influencer or the platform.
“A qualified accountant can help you navigate these changes, ensure compliance and make informed decisions based on your individual situation.
“With the right advice, you can not only avoid costly mistakes but also ensure you are making the most of the opportunities within the rules.
“In a year of significant tax reform, professional advice isn’t just valuable, it’s essential.”
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