Artificial intelligence tools are becoming increasingly popular for answering money-related questions. While these tools can be helpful for summarising information and helping you work out what to research next, the ATO and ASIC’s Moneysmart are reminding Australians that convenience doesn’t equal accuracy when it comes to tax, superannuation and financial decisions.
Moneysmart has published new guidance on using AI for financial information, responding in particular to research showing that nearly one in five Gen Z Australians use AI platforms for financial guidance, and nearly two thirds of these are confident in the accuracy of financial guidance from AI platforms, despite their significant limitations.
Tax and super rules can be detailed, exceptions matter, and the right answer often depends on your own circumstances. If you act on incorrect information, the consequences can be serious.
Publicly available general-purpose AI tools can be handy for broad, educational questions such as:
“How does compound interest work?”
“What does capital gains tax mean in simple terms?”
“What is salary sacrifice?”
“What’s the difference between concessional and non-concessional super contributions?”
Used this way, AI can act as a starting point to help you understand terminology and prepare for conversations with your professional adviser.
The situation changes when questions shift from general information to something that sounds like personal advice. Questions like “Can I claim this expense as a tax deduction?” or “How much should I put into super this year?” depend heavily on your individual circumstances, and AI tools aren’t the place to ask them.
In particular, the ATO warns that AI tools can provide false or inaccurate tax and super information, even while sounding confident and reassuring.
There are several reasons AI-generated answers can go wrong. First, AI can simply be incorrect. The ATO specifically warns that you may receive false or inaccurate information from AI tools.
Secondly, AI’s likely to miss important details that affect your specific situation. AI tools can’t understand your complete financial position, objectives or risk tolerance well enough to make decisions for you.
Thirdly, AI tools aren’t designed to provide regulated personal advice. Anyone providing personal financial advice must hold an Australian financial services licence, and providers giving tax advice services to retail clients for a fee must be registered with ASIC.
You should also consider privacy when using AI tools. It’s not usually possible to know how publicly available AI tools use the information you type into them, or who might see it in future, so avoid entering your Tax File Number, myGov sign-in details, bank account details, or copies of notices of assessment and identification documents into your query.
If you choose to use AI for money-related questions, treat it as a starting point for explanation rather than for decision-making. Always check answers against official sources like the ATO, ASIC’s Moneysmart website and trusted, qualified professionals. Remember that AI can sound confident even when the information it gives you is incorrect.
Keep personal information out of your chat wherever possible, and consider using AI to prepare questions for your professional adviser rather than seeking direct recommendations from the tool itself.
If your question is, “What should I do?”, “Can I claim this?”, “Does this apply to me?” or “What’s the best option in my situation?”, it’s time to consult a qualified professional.
For tax services, ensure your practitioner’s registered on the Tax Practitioners Board Register. For personal financial advice, seek assistance from a licensed adviser recorded on ASIC’s Financial Advisers Register.
AI can be a valuable learning tool, but it can’t replace professional advice tailored to your circumstances. Before acting on AI-generated information about tax, super or financial matters, verify it with trusted sources and consult your tax adviser or financial adviser to understand how the rules apply to your specific situation.
Source: www.ato.gov.au/about-ato/protect-yourself-from-misinformation-and-disinformation