The Role of a Tax Agent vs. Doing Your Own Tax Return in Australia!

Shaun Chaudhry
Jun 13
3 min read

Summary:

Understanding what a registered tax agent does
Pros and cons of using a tax agent versus self-lodging your return
Key deadlines and lodgment options for each approach
How to decide which method suits your financial situation
Tips for working effectively with a tax agent

Introduction: Filing Your Tax Return—What Are Your Options?

In Australia, lodging your tax return can be done either by using a registered tax agent or by completing it yourself online through the ATO’s myGov portal. Both methods are valid, but each has distinct benefits and challenges.

Choosing the right option depends on your financial complexity, comfort with tax law, and whether you want expert guidance.

What Does a Registered Tax Agent Do?

Registered tax agents are professionals authorized by the Australian Taxation Office (ATO) to prepare and lodge tax returns on behalf of clients. Their services often include:

Comprehensive tax return preparation
Identifying eligible deductions and offsets
Advising on tax planning strategies
Handling communications and disputes with the ATO
Ensuring compliance with current tax laws

Tax agents undergo rigorous training and must comply with professional standards, providing you with peace of mind.

Pros and Cons of Using a Tax Agent

Pros:

Saves time and reduces stress
Access to expert advice tailored to your situation
Greater chance of maximizing deductions and minimizing errors
Extended lodgment deadlines (usually until 15 May following the end of the financial year)
Support if the ATO has questions or audits your return

Cons:

Cost of fees (varies depending on complexity)
Less control over the lodgment process
Need to find a trustworthy and qualified agent

Pros and Cons of Doing Your Own Tax Return

Pros:

No direct cost (free via ATO’s myGov portal)
Full control over your financial information
Useful for simple tax affairs, such as wage earners with standard deductions

Cons:

Requires time and understanding of tax rules
Risk of missing deductions or making errors
No personalized advice or support for complex situations
Strict lodgment deadline of 31 October (unless you use an agent)

How to Decide Which Option Is Right for You

Consider the following questions:

Is your tax situation straightforward or complex?
Do you have investments, rental properties, or a business?
Are you confident navigating tax law and the myGov system?
Do you want to optimize your tax outcome or just lodge on time?
Can you afford the fees for professional assistance?

If you answered yes to complexity or optimization, a tax agent is usually beneficial.

Tips for Working Effectively with a Tax Agent

Provide accurate and complete documentation promptly
Ask about their fees upfront
Discuss your financial goals and any concerns
Keep copies of your lodged returns and correspondence
Review your return before submission for peace of mind

Conclusion: Making the Best Choice for Your Tax Return

Whether you choose to use a registered tax agent or lodge your tax return yourself, understanding the pros and cons helps you make an informed decision. For those with complex finances or who want to ensure compliance and maximize benefits, a tax agent is often the safest and most effective choice. For simple tax affairs, self-lodgment can be a straightforward and cost-effective option.

If you need expert help with your tax return or want advice on your options, Proactive Tax Advisors are ready to assist you.