Artificial intelligence is changing the way Australians lodge their tax returns, but experts warn it comes with risks.
With tax time in full swing, AI-powered tools are helping people scan receipts, categorise deductions and pre-fill returns faster than ever.
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Professor Jennie Granger from UNSW’s school of Accounting said that AI could be a “good starting point”.
“It has an impressive ability to analyse issues, apply the law and respond in straightforward language.”
The Australian Taxation Office has already received more than 14.1 million individual lodgements for 2024, a three per cent rise on last year.
However, the technology is far from foolproof.
Associate Professor Sam Kirshner warns that using tools like ChatGPT for tax returns can be risky.
“When it gets things wrong, you’re the one liable,” Kirshner said.
“Naturally, OpenAI will not accept liability, making the errors yours.”
There are also concerns that AI may not keep up with recent legislative changes or may provide advice based on outdated rules.
“If you get it wrong, you may either pay too much tax or too little. If it is too little, it may be picked up and you will have an amended assessment with penalties and interest,” Professor Michael Walpole said.
“The penalties and interest often far exceed the tax shortfall.”
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