The Australian Taxation Office collected $801.7 billion in revenue, highlighting the scale and importance of tax compliance across the country. Individuals and business face same question every tax season: Should I prepare and lodge my own tax return, or engage the services of a registered tax agent?
Lodging your tax return yourself may save money, but it can be time-consuming and overwhelming, especially for those unfamiliar with tax laws. Hiring a tax agent removes much of the burden, though it comes at a cost. For individuals with a single income stream and straightforward finances, self-lodgment may be suitable. However, business owners and those with multiple income sources often benefit from professional guidance. It’s important to note that even when using a tax agent, you remain responsible for the accuracy of the information provided.
Decoding Filing Tax Return Both Ways?
The tax lodgement in Australia is mostly done through tax agents, and a few people also go for self-lodgement.
DIY Tax Lodgment
Individuals who wish to lodge tax on their own can use the ATO app myTax, which is the official online tax lodgment system. MyTax is a secure, browser-based platform available through the ATO’s MyGov portal, and it serves as the primary tool for self-lodging individual tax returns in Australia.
There is no fee to access the portal, which is designed for accessibility. It supports most of the Individual tax situations that are simple. MyTax is ideal for people who:
- Wages or salaries of an income earner
- Basic deductions (work-related expenses or charitable donations)
- Do not own investment properties
- Do not operate a business or receive foreign income
But if you fill anything wrong it may cost you penalties as Australian Taxation laws are strict. Sole Traders can also use myTax for filing return, while Businesses can also use it. Self lodgment doesn’t offer support or guidance.
Tax Agent for Lodgment
Professionals licensed by the y the Tax Practitioners Board (TPB) are Tax agents. They are eligible to provide tax-related services to Individuals, Sole traders, Partnerships, SME’s, and Small businesses, including trust and companies. Only licensed tax agents can charge a fee for preparing and lodging tax in Australia on behalf of client.
What Services Do Registered Tax Agents Offer?
The TPB registered Tax agent can rightfully provide services, including;
- Tax Return Preparation and Lodgment
- Business Activity Statements (BAS) and Instalment Activity Statements (IAS)
- Tax Compliance
- Tax Advisory and Planning
- Lodgment Extensions
- Audit Assistance and ATO Disputes
Who Should Consider DIY Lodging?
The DIY lodging works fine for Individuals whose financial situation is straightforward. Some of the Aussies who can benefit from myTax are;
- Individuals With a Single Income Stream
- People Claiming Standard Deductions
- Cost-Conscious Filers
- Digitally Confident Individuals
Who Should Choose “Tax Agent Near Me” Option?
Employing a registered tax agent is beneficial when the financial situation is complex, you have multiple income sources, or when strategic tax planning is needed. Though the services are not free, they come with benefits like potential tax savings, ATO compliance, and most importantly, peace of mind. A tax agent is the best option if;
- Multiples Assets
- Complex or High-Value Deductions
- Tax Structuring and Entity Management
- Business Owners, Sole Traders, and Freelancers
Pros and Cons of Tax Lodgment Both Ways
Weigh the pros and cons of both methods to identify which is right for you to file taxes this season.
| Aspect | DIY Tax Lodgment | Registered Tax Agent |
| Cost | Free to low ($0–100+) | Moderate to high ($100–400+, tax-deductible) |
| Time | Quick for simple returns | Faster for complex cases (agent handles it) |
| Support | Limited (ATO helplines, software FAQs) | Full support + audit representation |
| Risk of Errors | Higher if unfamiliar with tax rules | Lower professionals stay updated |
| Deadline Flexibility | Must lodge by 31 October | Agents can lodge later under the ATO programs |
| Deduction Optimization | Limited to user knowledge | An expert review may increase the refund |
Conclusion!
There is no universal solution when it comes to tax filing in Australia. Two main ways are self-lodgment or through a registered tax agent. Individuals with a tight budget and a single income source can benefit from myTax, while a freelancer juggling multiple gigs can benefit from a registered agent and focus on generating more business. In any case, ATO compliance is mandatory.
The best option is to rely on a trusted, ATO-approved DSP like Aupod, which provides tax solutions to Individuals and businesses. The deduct from refund option can ease the payment issue.
Book a free consultation with Aupod to minimise stress and maximise return with Aupod!
