Why You Should Use a Registered Tax Agent
By Travis Bacon
August 04, 2021
The age-old question...
Can I lodge my 2021 tax return, or should I see a Tax Agent?
As a Chartered accountant and registered tax agent with the Tax Practitioners Board, I typically suggest that you can do your tax return if you are an employee and only earn a wage with some simple interest income and a few common work-related expenses.
How to Lodge your own 2021 Tax Return?
Lodging your tax return is relatively simple with the latest online services provided by the ATO via your myGov account. If you don't already have a myGov account, you'll need to create one to lodge your return. Lodging your tax return involves reviewing your income (which should automatically be populated by the ATO) adding any additional income and deductions for the financial year.
What's the catch? Well, it can be time-consuming and challenging to understand all of the latest complex legislation. Ultimately you only complete your tax return once a year, and you are not a professional. In all honesty, your time could be better spent doing something you love.
Let's be honest taxes are one of the things about being an adult everyone hates. But, on the other hand, being an adult means you can eat dessert whenever you want!
When to use a Tax Agent to lodge your Tax Return?
I would strongly recommend using a tax agent when your circumstances get more complex. For example, if you a buying and selling CryptoCurrency, Share or other investments, have multiple rental properties or carry on a business of any scale. An accountant is worth their weight in gold when things get complicated.
According to Lauran Higgins, ASIC senior executive leader, "It is a good idea to assess your needs for an accountant each and every year, some years your tax situation may be straightforward, and you feel confident to do it yourself. Other years you may need the help of a professional."
How to know which Accountants you can Trust?
It's hard to know who to trust in the modern world. Fortunately, there is a simple way to check if your accountant is a registered tax agent. A simple search on the Tax Practitioners Board (www.tpb.gov.au) will confirm your dealing with a registered tax agent. You can also rely on friends, families and trusted business connections for referrals and read reviews and testimonials.
How much does an Accountant Cost?
The cost of an accountant can range from as little as $19 for companies that outsource their work to offshore accountants, up to hundreds of dollars for high net worth individuals with very complex finances.
The most important thing is finding a tax accountant who can connect with and who understands your circumstances. At TaxDigital, we aim to provide fixed prices for our services where possible. Our fixed fees for individual tax returns and sole trader tax returns are listed on our website.
Below is a testimonial of a client who switched to TaxDigital for a more personalised experience
"I switched accountant/bookkeeper this year and was very lucky to come across Travis Bacon who does both! I engaged him as my accountant and bookkeeper. Travis is extremely personable, highly effective, has strong attention to detail and is very patient spending time to understand his client's needs. He also has great knowledge of this complicated and ever-changing field. No more going into the office and sitting around waiting as everything is done promptly and swiftly online. I have absolutely no hesitation in recommending Travis to any business or individual who seeks a reliable and efficient accountant."