By Drew Pflaum
Publication Date: 2026-05-11 22:12:00
Today’s federal budget is expected to bring big changes to capital gains tax and negative gearing, and millions of Australians will do exactly the same when they hear the news.
You open ChatGPT.
Some may wonder whether they should sell an investment property. Others will ask if they can still equip negatively. Small business owners will be wondering what claims they can make. Tradesmen will ask whether the purchase of a new device, software subscription or appliance is deductible.
And for many Australians, the answers they get back could be dangerously wrong.
This is set to be the most consequential year yet for artificial intelligence (AI) in tax. Not because AI suddenly exists—it already does—but because people now trust it with financial decisions that could cost them thousands of dollars if it gets it wrong.
The biggest problem is so-called “hallucinations”.
Then the AI gives you an answer that sounds completely legitimate, confident and sophisticated…