Every year, millions of Australians face the same question: Should I lodge my tax return myself, or should I use a tax agent? If you’re wondering which option is best for you, here’s the short answer:
If your tax affairs are simple and you’re comfortable navigating MyGov, self-lodging is a great (and free) option. But if your income is more complex, you’re claiming deductions, or just want peace of mind, using a registered tax agent can save you time and potentially boost your refund.
In this article, we break down the pros and cons of both self-lodgment and using a tax agent, so you can make the right call based on your situation.
What is Self-Lodgment?
Self-lodgment means you prepare and submit your own tax return using the ATO’s online services, typically through MyGov. Most Australians are eligible to do this, and many choose to because it’s free and accessible.
Pros of Self-Lodgment
1. Free to Use
There’s no fee to lodge your return through MyGov. This can be especially appealing for people with straightforward tax affairs.
2. Control and Flexibility
You can lodge your return anytime, anywhere, without relying on someone else. This can be handy if you’re short on time or live regionally.
3. Fast Processing
ATO systems are streamlined for online returns. Most people receive their refund within two weeks if there are no issues.
Cons of Self-Lodgment
1. Higher Risk of Mistakes
Without tax knowledge, it’s easy to miss deductions or incorrectly report income. Mistakes can lead to penalties or smaller refunds.
2. Limited Support
ATO services offer guidance, but they don’t give advice. If you’re unsure about something, you’re on your own.
3. Shorter Deadline
If you self-lodge, your return is due by 31 October. Tax agents get extended deadlines (often into the following year).
What is a Tax Agent?
A registered tax agent is a qualified professional authorised by the Tax Practitioners Board (TPB) to prepare and lodge tax returns on behalf of clients. They stay up to date with the latest tax laws and can provide personalised advice.
Pros of Using a Tax Agent
1. Expert Advice
Tax agents know the ins and outs of deductions, offsets, and compliance. They can often spot opportunities you may not be aware of.
2. Maximised Refund
By correctly applying all deductions, a tax agent can often get you a better result than self-lodging.
3. Peace of Mind
No second-guessing or worrying about errors. If you do get audited, your agent can usually represent you.
4. Extended Deadline
Tax agents have access to extended lodgment deadlines, giving you extra time to get your documents together.
5. Deductible Fee
The cost of using a tax agent is tax-deductible in the following year’s return.
Cons of Using a Tax Agent
1. Cost
Fees typically range from $100 to $300 for individuals, depending on complexity. This may not be worthwhile if your return is simple.
2. Time and Coordination
You’ll need to make time to meet with your agent or share your information online. Some people prefer to get it done themselves in one sitting.
When Should You Self-Lodge?
Self-lodging might be the right fit if:
- You have a single job with no other income.
- You’re not claiming work-related deductions.
- You’re comfortable using MyGov.
- You want to avoid paying a fee.
Example: Olivia works a full-time retail job and doesn’t have any investments. She logs in to MyGov and lodges her return in under 30 minutes.
When Should You Use a Tax Agent?
Consider a tax agent if:
- You have multiple income streams (like shares, crypto, or rental properties).
- You run a small business or are a sole trader.
- You’re claiming significant deductions.
- You’ve sold assets (like property) that may trigger capital gains tax.
- You want help or peace of mind.
Example: Jason works in construction and also runs a part-time landscaping business. A tax agent helps him claim vehicle expenses, tools, and mobile phone use while ensuring he remains compliant.
How to Choose a Tax Agent
If you decide to go down the tax agent route, make sure they are:
- Registered with the TPB -you can check on www.tpb.gov.au.
- Experienced in your type of income -e.g. rental properties, crypto, sole trader.
- Transparent about fees -ideally with a fixed price and scope.
Final Thoughts: What’s Right for You?
There’s no one-size-fits-all answer. Choosing between self-lodgment and using a tax agent depends on your confidence, tax complexity, and appetite for risk.
If you’re confident and your return is basic, go ahead and lodge it yourself. But if things get more complicated, a good tax agent can be worth their fee many times over.
Either way, just make sure your return is accurate, on time, and complete ,that’s what the ATO cares about most.
About The Author: Artur Osadchiy
Artur is a Certified Practising Accountant with over 30 years’ experience working as a trusted advisor to 600+ clients across Australia. Based in Melbourne, he started Tax Window with his wife Marina in 2009 and leads the firm’s tax and accounting team. In his free time, Artur enjoys watching the AFL (go Kangas!) and spending time with family.
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