Tax Agent vs myTax — Which Should You Use?
This article provides general information only and does not constitute financial advice. For advice tailored to your situation, consult a licensed financial adviser. Learn more.
Contents
Most Australians can lodge their tax return themselves via myTax at no cost. But a registered tax agent can be worth paying for when your affairs are more complex, when you want someone else to handle it, or simply to get the extended lodgement deadline. Here is how to decide.
myTax — When It Works Well
myTax is the ATO’s free online lodgement tool, accessed through myGov. It is well-suited to:
- Employees with one or two jobs — wages, PAYG withholding, bank interest, straightforward deductions
- Simple investment income — dividends from Australian shares with pre-filled data
- Standard deductions — work-from-home, phone, uniform, union fees
- Students — part-time income, tax-free threshold, HECS repayment
- People confident checking and submitting pre-filled information
myTax pre-fills a large amount of your data automatically from employer income statements, banks, share registries, and government agencies. For a simple return, you mainly need to verify the pre-filled figures, add any deductions, and submit.
Cost: Free
Deadline: 31 October
Time: 30–90 minutes for most straightforward returns
A Tax Agent — When It Pays for Itself
A registered tax agent is worth the cost when your situation is more complex:
| Situation | Why an agent helps |
|---|---|
| Rental property | Correct treatment of deductions, depreciation, CGT implications |
| Multiple capital gains events | Share sales, crypto, property — calculating cost bases correctly |
| Self-employment / business income | Business schedule, deductions, PAYG instalment variations |
| Overseas income | Foreign income tax offset, DTA provisions |
| Multiple jobs with complex withholding | Ensuring withholding and final liability are reconciled correctly |
| Prior year returns not lodged | Agent can manage ATO communication and lodgement strategy |
| You want the extended deadline | Tax agent clients typically have until May the following year |
| Divorce or estate matters | Complex asset transfers, legal arrangements |
A good tax agent can also identify deductions you might have missed — the fee often pays for itself in increased deductions or corrected figures.
Typical cost: $150–$400 for an individual return; more for complex returns with business, rental, or investment schedules. Tax agent fees are themselves tax-deductible in the following year.
The Extended Deadline Benefit
If you use a registered tax agent, the lodgement deadline extends from 31 October to as late as 15 May the following year (the exact date depends on the agent’s lodgement program). This is particularly valuable if:
- Your income information is complex and takes time to gather
- You have a rental property depreciation schedule from a quantity surveyor that arrives late
- You simply need more time
You must be on your tax agent’s client list before 31 October to access the extended deadline. Contacting a new agent after 31 October will not grant you the extension if you have already missed the individual deadline.
Verifying a Tax Agent
Anyone who charges for tax return preparation must be a registered tax agent. You can verify registration through the Tax Practitioners Board register. Avoid anyone who is not registered — they cannot legally charge fees for this service.
Can You Use a Tax Agent for Free?
Some community tax help programs offer free tax return preparation for eligible people with simple affairs. The ATO’s Tax Help program provides free assistance from accredited volunteers for people who earn less than $60,000 and have straightforward returns. Available July to October at locations across Australia.
Frequently Asked Questions
How much does a tax agent cost in Australia? A basic individual return typically costs $150–$300. Returns with rental properties, capital gains, or business income typically cost $300–$600 or more. Always ask for an estimate upfront.
Are tax agent fees tax-deductible? Yes. Fees paid to a registered tax agent for preparing and lodging your return are deductible in the following income year. A $250 fee in FY2025–26 is deductible in your FY2026–27 return.
Does a tax agent guarantee a bigger refund? No reputable tax agent guarantees a specific refund amount — that would depend on your actual circumstances and claims, not the agent. Be cautious of agents who promise unusually large refunds.
Can I switch from myTax to a tax agent mid-year? Yes. You can engage a registered tax agent before 31 October to access their extended deadline, even if you had planned to lodge yourself. The agent must be formally engaged and have you on their client list before the individual deadline passes.
What is the difference between a tax agent and a financial adviser? A tax agent prepares and lodges tax returns and provides tax advice. A financial adviser provides advice on investments, super, insurance, and wealth management. Some individuals hold both registrations, but they are separate professional roles with different regulators (TPB for tax agents, ASIC for financial advisers).
This article provides general tax information. For advice tailored to your situation, speak with a registered tax agent. Find one through the Tax Practitioners Board register.