You have 2 options when lodging your tax return: do it yourself online or use a tax agent. The ATO's online tool myTax, which is available though your myGov account, is completely free and easy to use. Some prefer to save time, especially if you don't know your way around your income and deductions or if you have a complex tax return to lodge, by using a tax agent.
They can help you learn about claims for deductions you maybe didn't know you were eligible for. It usually costs around $100-200 to pay a tax agent to prepare a simple PAYG tax return for you, but that cost will increase as the complexity of your tax return increases – things like investments, rental properties, crypto holdings and complicated workplace deductions could cost you more.
Whatever the fee, you can claim on your tax the following financial year.
Be careful of sneaky online platforms that mimic the ATO – they aim to look like the MyGov myTax site, but they're a for-profit business that will charge you a fee. The ATO's myTax platform is free, and can only be accessed through your MyGov account.
"There are several benefits of utilising a tax agent to file your tax return. Firstly, tax agents receive tax return due date and payment extensions – usually extended from 31 October to 31 May the following year – which allow you additional time to get your affairs in order should you require it. Tax agents stay up to date with the latest tax legislation, which is often changing. Engaging a tax agent can help mitigate the risk of errors in your tax return, which could lead to audits and potentially penalties.
Tax agents can also add valuable insights into your financial position by offering suggestions to minimise tax, identifying risk areas, advising on eligible deductions and advising based on your personal circumstances."
Unsure whether to pay someone or do it yourself? We've compared both options side by side to help you make the right decision.
| DIY online tax return through myGov | Tax agent (online or in person) | |
|---|---|---|
| How it works | Lodge your tax return yourself with the ATO's myTax service, by logging in to your myGov account online. If you don't have a myGov account yet you'll need to create one to lodge your return. Your income is generally pre-filled for you and you can add any deductions for the financial year. You'll need receipts, invoices and details of any spending you want to claim. | You can lodge your tax return with a tax agent in person, where they'll complete your return with you, or online. If you choose online, you can provide them with documents and they manage the process, or you can also complete your return yourself, then the agent will review it to ensure it's all correct and lodge it with the ATO for you. You'll need receipts, invoices and details of any spending you want to claim. |
| Price | It's free to lodge your tax return yourself using myTax via your myGov account online. Anyone can file their tax return online, including if you're a business owner or sole trader. Be careful of sneaky websites that look like the ATO, but charge you a fee. | Usually starts at $100, and prices go up from there, depending on your tax needs. The cost is tax-deductible, as is the cost of travel to and from their office. |
| Deadline | The deadline to lodge your tax return via myTax is 31 October. You generally receive your income statement by late July, giving you over 3 months to complete your return. Fines apply if you don't lodge your tax return on time, whether you lodge yourself or use a tax agent. | The deadline is extended to May the following year (the exact date in May changes each year), giving you a 6-month extension on DIY tax lodgement. If you're using a tax agent for the first time, you need to make sure you've made an appointment, or are at least on their books, by 31 October. |
| How long does it take? | Got a simple situation – one job, regular income, simple deductions? You could be done in less than an hour, as most of your details should be pre-filled or easy to find. But if you've got lots of deductions to claim, and if you need to find a bunch of receipts or add income that isn't already pre-filled, it can take hours. If you're claiming things like your car or a home office, depreciation on work equipment, investments and rental income, or capital gains tax, it can become time-consuming and more complicated. | You can expect to spend 30-60 minutes in their office if seeing them in person. It'll take about the same amount of time to file your return online with the support of a tax agent too. The agent will do the work of processing your claims and return. But you still need to provide receipts, invoices and documents that might not be pre-filled. The more organised you are here (ie having a folder where you save all this info), the less time it will take – both you and the agent! |
| Ease and convenience | You can lodge your tax return with myTax from the comfort of your home without getting off the couch at 11pm if you want. Provided you have access to the Internet and a computer, tablet or smartphone device, the choice is yours. Your income, health insurance and Medicare information should be pre-filled for you so you'll just need to review it. The more you're claiming, the more time it will take. | You can file your tax return with a tax agent from the comfort of your home, too. Many tax agents offer an online service where they'll communicate with you over the phone or by email to get your tax return completed, then they'll lodge it with the ATO on your behalf. Or, you can book a meeting if you prefer to meet in person. |
| Claiming basic deductions | Claiming basic deductions is a straightforward process using myTax if you've got your receipts handy. If you're only claiming a few things, for example the odd conference ticket, some tools you've purchased specifically for your job or some charity donations, you can do this easily yourself. | A tax agent will also easily claim any basic deductions you're entitled to and they might even know a few more you're not aware of. Just remember, for deductions above $300 you still need to show receipts, even when you're lodging your return with a tax agent. |
| Claiming more-complex deductions | Say you're claiming more-complex deductions like a portion of your bills if you work from home, your car that you sometimes use for work-related travel or investment-related expenses. You'll need to do your research to make sure you know the current rules around these deductions, and you'll need to do the calculations to work out the correct amount you're entitled to claim. Plus, you need to be able to show your workings and calculations to the ATO in case you're audited. | This is a tax agents' time to shine, as they can take over all the complicated calculations and deductions for you. They will tell you what you're entitled to claim and what you're not entitled to claim – property investors are often shocked to learn a renovation is not tax deductible, it can only be added to a cost base. This is the way to go if you want peace of mind of knowing it's all taken care of, without you having to dig into all the details yourself. |
| Capital gains taxes (or capital losses) | If you've made a capital gain or loss in the financial year by selling assets like shares or an investment property, you need to claim these correctly. This is quite straightforward to do via MyGov, so if you've just got one to claim you shouldn't have any issues doing it yourself. But it can become tricky if you've sold several assets within the year, or if you have losses and gains to claim. | A tax agent will be able to correctly claim any capital gains or losses you've made throughout the financial year, making it a stress-free process for you. They can also offer professional advice around future assets you're planning to sell, so you can take advantage of any potential tax offsets available. |
| Support and advice | Doing your tax yourself using myTax is a great way to save money as it's a free service, but in terms of professional support and advice you're pretty much on your own. If you've just got a basic tax return, you might find this isn't an issue. | If you think you need a bit of support lodging your tax return correctly, a tax agent would be a better choice. As well as making sure it's lodged correctly, a tax agent can give advice around what you can and cannot claim (as well as exactly how to claim things). |
| Receiving your refund | If you're entitled to get some money back, you can expect to receive your refund within 2 weeks of submitting your return. If there's an issue with your return or the ATO needs further documentation or proof of deductions, this will delay the process. | It shouldn't take any longer to receive your return when you lodge it via a tax agent, so you can still expect the money to land in your bank account within two weeks unless there's an issue with your claim. |
| Final responsibility | When you're filing your tax return yourself with myTax, you take full responsibility for lodging it before the deadline and making sure everything you've claimed is correct. | A tax agent will help ensure your return is completed correctly and you're not claiming deductions that you're not entitled to. However, you'll be asked to sign a declaration at the end agreeing that all the information is true and correct, so the final responsibility still sits with you. |
Which option you choose will depend on your individual tax return, what deductions you wish to claim, how time-poor you are and how much knowledge you have about the tax system. If you've got a basic tax return with one income stream (for example you have a full-time job and no other earnings) and minimal deductions to claim, you might prefer to lodge with the free myGov tool to save yourself the out-of-pocket expense.
If you've got more than one income stream, you earn income from investments, you have some capital gains tax to claim or you have several deductions that take a bit of working out, you might benefit from the expertise of a tax agent. If the cost of a tax agent is what's holding you back, remember their fee is completely tax deductible.
Here's what you can and can't claim in your tax return. See our checklist here and know what receipts you need to keep.
Your tax return has a different deadline depending on which financial year you're filing for, and whether or not you're using a tax agent. See which tax return due date applies to you in this guide.
How does income tax work, and how can you save money on your next tax return? Find out in this handy guide.
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If you get your tax done by an accountant how long does it take to register on my gov
Hi Freyer, this could vary depending on your accountant and when they lodge your return – but it could be anywhere from a couple of days to a couple of weeks.