What is the cost of managing tax affairs in Australia?

Wondering how much does a tax return cost in Australia? For individuals, the average cost of preparing and lodging a personal tax return typically ranges from $100 to $400, depending on the complexity of your financial situation. If you’re a sole trader, freelancer, or business owner, the cost of managing tax affairs can be significantly higher, especially for company tax returns or if you’re dealing with investments, capital gains, or multiple income streams.

Tax agent and accountant fees vary based on your location, business structure, and whether you require additional services like tax advice, BAS lodgements, or amendments to prior returns. Choosing a registered tax agent or accountant who understands your unique needs can help you maximise your deductions and stay compliant with the ATO.

In this guide, we’ll cover:

• How to file a tax return in Australia

• The average cost of personal and company tax returns

• Key factors that influence the cost of managing tax affairs

• Tips for choosing a qualified tax agent or accountant

Whether you’re lodging a simple return or managing complex tax obligations, understanding the costs involved can help you budget more effectively this financial year.

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How much does a tax return cost in Australia?

The cost of a tax return in Australia varies depending on your employment status, income complexity, and whether you’re filing as an individual or business. On average:

• Personal tax return: $100 to $400

• Tax agent fees (simple returns): Typically $100 to $280

• Sole trader tax return: $180 to $500

• Company tax return: $300 to $1,000

• Bookkeeping services: $70 to $300

• BAS lodgement by a tax accountant: $150 to $500

The main factor influencing your tax accountant cost is your business structure. Sole traders, partnerships, and companies generally require more frequent and complex tax management than individual taxpayers, which increases the cost of managing tax affairs.

If you’re a business owner, hiring a registered tax agent or accountant is a smart investment to ensure you maximise deductions and remain compliant with ATO regulations. These professionals can identify eligible tax deductions, help with business activity statements (BAS), and manage lodgements efficiently— reducing the risk of ATO penalties or missed claims.

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What is a tax return?

A tax return is a formal report submitted to the Australian Taxation Office (ATO) that outlines your taxable income, deductions, expenses, and other financial information for the financial year. It helps the ATO determine whether you owe additional tax or are eligible for a tax refund.

If you earned any income — whether through employment, business activities, or investments — in the past financial year, you’re required to lodge an income tax return by the due date set by the ATO.

While you can lodge your tax return yourself through myTax (via the ATO website) for free, the process can become complex — especially for sole traders, freelancers, or small business owners with multiple deductions and income sources. In these cases, working with a registered tax agent or tax professional is highly recommended to ensure accuracy and help maximise your return.

A tax return typically includes multiple sections depending on your income type, business structure, and claimable deductions. If you’re unfamiliar with the process or want to ensure you’re claiming everything you’re entitled to, engaging a professional may lead to a better financial outcome.

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How to do a tax return in Australia

Wondering how to do a tax return in Australia? You have a few options depending on how complex your financial situation is.

1. Lodge your tax return online with myTax

For simple individual tax returns, you can complete your tax return online using myTax, the Australian Taxation Office’s (ATO) free online service. To access it, you’ll need to link your ATO account to your myGov account.

myTax is ideal for individuals with straightforward tax affairs. Many sections are pre-filled with data from employers (via PAYG summaries), banks, and government agencies, making the process faster and easier.

2. Use an online tax return service

If your return is more complex but you still want to file online, you can use a registered online tax return service such as Etax Australia or similar platforms. These services provide step-by-step guidance and support for individuals, sole traders, and businesses.

3. Hire a tax return accountant

If you have multiple income streams, run a business, or want to ensure you’re claiming all eligible deductions, it’s worth working with a professional tax accountant. They can manage your financial records, ensure compliance with ATO requirements, and help maximise your tax refund.

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What is involved in a tax return?

Filing an income tax return in Australia involves declaring your total taxable income, claiming eligible tax deductions, and reporting any prior tax paid throughout the financial year. This process helps the Australian Taxation Office (ATO) determine how much tax you owe — or how much you may receive as a tax refund.

The tax return process can seem complex, especially for sole traders, freelancers, and business owners, due to the need to track various income sources and allowable expenses.

When completing your tax return, you’ll generally need to include:

• Income: Salary and wages, business income, government payments, rental income, dividends, interest, and capital gains

• Tax withheld: From your employer or clients during the financial year

• Deductions: Work-related expenses, self-education, gifts or donations, home office costs, and business expenses

• Offsets and adjustments: Including low-income tax offsets, private health insurance rebates, and the Medicare levy

• Prior tax paid: To ensure any tax credits are factored in

The final return amount is based on how much tax you’ve already paid versus what you’re assessed to owe. Using a registered tax agent can simplify this process and help ensure you’re claiming all deductions you’re entitled to.

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When do I need to lodge a tax return?

In Australia, the tax season runs from 1 July to 31 October each year. This is the window in which individuals must assess and lodge their income tax return with the Australian Taxation Office (ATO) for the financial year covering 1 July to 30 June.

The standard tax return deadline is 31 October. If you’re lodging your return yourself using myTax, it must be submitted by this date. However, if you register with a tax agent or accountant by 31 October, you may be eligible for an extension—in some cases, until May the following year.

Key points:

• Tax return lodgement opens: 1 July

• Deadline for self-lodgement: 31 October

• Possible extension: If using a registered tax agent and you sign up by 31 October

• Previous years’ tax returns: Can be lodged online or with help from a tax agent if you’ve missed past deadlines or were overseas

If you’ve already lodged but didn’t receive your expected tax refund, double-check that your bank account details were entered correctly and that your income and deductions were properly reported. Staying on top of your lodgements helps avoid ATO penalties and ensures your financial records stay up to date.

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What do I need for tax return purposes?

Before lodging your tax return, it’s important to gather all relevant financial records and supporting documents to ensure accuracy and maximise your potential tax refund. Whether you’re completing your return yourself or using a registered tax agent, having the right paperwork ready will make the process smoother.

Here’s a checklist of documents you may need for your tax return in Australia:

Personal details

• Tax File Number (TFN)

• Bank account details (for your refund)

• Medicare card number

• Private health insurance policy details

• Spouse’s income details (if applicable)

Income information

• Payment summaries or income statements from all employers (via Single Touch Payroll)

• Centrelink payment summaries (if applicable)

• Details of foreign income earned

• Interest earned from bank or building society accounts

• Dividend statements and managed fund income

• Rental property income

• Capital gains or losses from investments sold

Deduction and expense records

• Receipts for work-related expenses (e.g. uniforms, equipment, travel)

• Donation receipts to registered charities

• Cost of managing tax affairs (tax agent or accountant fees)

• Contributions to superannuation (especially if claiming a deduction)

• Self-education expenses

• Home office expenses (if working from home)

Previous financial year

• Notice of Assessment from the previous financial year (for reference)

Organising these documents ahead of time can help avoid errors, minimise delays, and ensure you’re claiming everything you’re entitled to.

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What can I claim on tax?

When filing your income tax return, you can claim several tax deductions to reduce your taxable income, including:

• Work-related expenses: Tools, equipment, uniforms, laundry, and travel costs for work.

• Home office: A portion of electricity, internet, and office supplies if you work from home.

• Self-education: Costs for courses, tuition, and related materials.

• Other deductions: Charitable donations and investment-related expenses.

Keep records and receipts for all claims to ensure they are valid.

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Is the tax return accounting fee tax deductible?

Yes, the cost of managing your tax affairs, including tax return accounting fees, is generally tax-deductible. If you hire a professional tax consultant or tax agent to handle your tax return, you can usually claim the cost of their services as a deduction.

For specific details on what can and can’t be claimed, it’s best to consult with a local tax professional or tax agent.

Will I get a tax refund?

If you’ve paid more tax than required, you’ll receive a refund for the overpaid amount. However, if you haven’t paid enough, you may face a tax bill. Around two-thirds of Australians lodging their taxes typically receive a tax refund. Working with a qualified accountant can help maximise your refund by ensuring you claim all eligible deductions specific to your circumstances.

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Who does tax returns?

There are various tax professionals who can handle your tax return, including tax accountants, tax agents, and tax consultants. To complete and lodge a tax return in Australia, your tax professional must be registered and hold a current licence.

Using an unlicensed individual can make the lodgement invalid and prevent the processing of your return. Once lodged, your tax refund will be automatically deposited into your bank account if you’ve provided those details.

How to find a tax return agent and get quotes

To find a reliable tax return agent and compare prices, follow these steps:

1. Use Yellow Pages: Get multiple free quotes from local tax agents and tax accountants. This helps you find the right professional for your needs.

2. Prepare your documents: Gather all your financial records and necessary paperwork before contacting a tax agent. This will help them understand the scope of work required.

3. Ask the right questions: When requesting quotes, make sure to inquire about:

   • The agent’s qualifications and experience.

   • Their insurance coverage.

4. Check reviews: Read online reviews to get an idea of the tax agent’s reputation and the level of service they provide.

By using Yellow Pages, you can easily compare tax agents and find one that suits your needs and budget.

Want to find an accountant in Sydney, Melbourne, Brisbane, Adelaide or Perth?

*All prices quoted were sourced at the time this cost guide was written and should only be used as an estimate.