As Australians prepare their tax returns for the 2025-26 financial year, many are navigating a much more complicated income environment shaped by hybrid work, side hustles, digital platforms and AI-driven work opportunities. An RMIT expert explains how AI can influence tax time.
Professor Angel Zhong, School of Economics, Finance and Marketing:
"We are seeing more Australians use generative AI tools to prepare their tax returns or identify deductions, which creates new risks.
"One emerging risk is people using AI-generated deduction lists that include claims they're not actually entitled to make.
"Even if AI helps prepare your tax return, taxpayers still need proper receipts, records and evidence to support their claims.
"Additionally, digital platforms are increasingly sharing transaction data with the Australian Tax Office through data-matching programs, and identifying small online income streams that many Australians think fly under the radar. Even if earnings seem minor or irregular, they may still be taxable.
"The ATO's systems are becoming smarter and more automated. Taxpayers should focus on substantiation and good record-keeping rather than chasing questionable deductions."
Dr Angel Zhong is a Professor of Finance, specialising in global financial markets, behaviour and trends.
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