As tax season rolls around, many Australians are faced with a familiar question—should I lodge my tax return myself, or engage a registered tax agent?
Both options are viable, but the right choice depends on your circumstances, financial goals, and how confident you feel navigating the ever-changing tax landscape.
The DIY Route: When It Might Work
Lodging your return via the ATO’s myTax system is a popular choice for individuals with simple tax affairs. It’s free, accessible, and can be done in a matter of minutes if:
- You have a single income stream (e.g., salary or wages)
- You’re claiming standard deductions like work-related expenses
- You have no investments or business income
- You’re not expecting major changes or refunds
If your situation is straightforward and you’re comfortable with the process, DIY lodging might be all you need.
However, it’s important to be aware of the risks. Even small mistakes or missed deductions can delay your return or reduce your refund. And if you’re not across the latest ATO updates, you could unknowingly fall short of compliance.
When Using a Tax Agent Makes Sense
If your finances are more complex, a registered tax agent can be a smart investment. Tax professionals are trained to identify opportunities for savings, help you stay compliant, and guide you through more intricate aspects of tax law.
Consider using a tax agent if you:
- Are self-employed or run a small business
- Own investment property or have multiple income sources
- Receive dividends, capital gains, or foreign income
- Use trusts, companies, or family entities
- Want to maximise your deductions or plan ahead
A good agent not only handles your return but also looks at your broader financial picture, advising on everything from tax-effective structures to salary packaging and future planning.
The Added Value of Professional Lodgment
- Deadline Extensions: Registered tax agents can often lodge returns after 31 October under the ATO’s lodgment program.
- Accuracy and Compliance: Agents stay up to date with changing legislation and deduction rules, helping reduce the risk of errors or audits.
- Time-Saving: Your agent will manage documentation and submissions so you can focus on running your business or managing your life.
- Peace of Mind: With a professional on your side, you know you’re meeting your obligations and getting the best outcome possible.
Cost vs Benefit
While using a tax agent involves a fee, it’s typically tax-deductible in your next return. And for many, the potential tax savings and reduced risk far outweigh the cost.
Making the Right Choice This Year
Ultimately, the decision comes down to your personal situation and how comfortable you feel handling your own return.
If your financial life is growing more complex, or if you’re unsure whether you’re claiming everything you’re entitled to, now might be the perfect time to seek professional help.
Avoid unnecessary stress and make the most of your return—contact Supervision Group today to speak with one of our registered tax agents. We’re here to help you lodge with confidence.
