Should you do your tax return yourself? Or use a registered tax agent in Australia?
There are pros and cons to doing your own tax return versus using a tax agent. Here are some things to consider:
Doing your own tax return:
Pros:
- It can be less expensive to do your own tax return, as you will not have to pay a fee to a tax agent.
- It can be a good way to learn more about the tax system and understand your own financial situation.
Cons:
- It can be time-consuming to do your own tax return, especially if you have a complex financial situation.
- You may not have the expertise or knowledge to accurately complete your tax return, which could lead to mistakes or missed deductions.
- If you make mistakes on your tax return, you could be subject to penalties or fines from the Australian Taxation Office (ATO).
Using a tax agent:
Pros:
- A tax agent can save you time and effort by completing your tax return for you.
- Tax agents are trained professionals who are knowledgeable about the tax system and can help you get the best possible outcome on your tax return.
- If you use a tax agent and are audited by the ATO, the agent can represent you and handle any queries or issues that arise.
Cons:
- Hiring a tax agent can be more expensive than doing your own tax return.
- You will need to provide your financial documents to your tax agent
My opinion
If you are not comfortable doing your own tax return, please seek the assistance of a tax agent. These services may come with a fee, but will provide you a peace of mind.
I did my tax return myself while I was still studying and worked part time. Since my income would not surpass tax threshold, I would get all my tax deductions during/at the end of the financial year.
However, as you go full time and earn more, it might be better to hire a tax agent as you might be able to get more deductions on taxable income which you might not know. Tax agents are also less likely to make an error. Ultimately, you’ll not need to be in a dilemma on whether you made your tax return all right or made some mistake. This will help you to sleep properly at night as well.
