Every year, millions of Australians ask themselves the same question: “Do I need to hire an accountant to lodge my tax return, or can I do it myself?”
With the increasing availability of DIY tools like MyGov and growing access to online tax lodgement platforms, the temptation to self-lodge is stronger than ever. However, as tax legislation continues to evolve and financial lives become more complex, more Australians are turning to registered tax accountants for peace of mind and better outcomes.
This article explores the costs, benefits, and scenarios to help you determine whether you should hire a tax accountant to handle your return in 2025.
What’s Involved in Lodging a Tax Return in Australia (2025)?
In Australia, most individuals must lodge an annual tax return to report income and claim deductions. This process involves:
- Declaring income (employment, rental, investments, government payments)
- Claiming allowable deductions (e.g., work-related expenses, depreciation)
- Reporting capital gains or losses
- Confirming PAYG summaries and super contributions
- Reviewing Medicare and private health details
The Australian Taxation Office (ATO) typically pre-fills some information through your MyGov account, but accuracy and completeness are your responsibility.
🔔 Key deadline: Individuals must lodge by 31 October 2025, unless using a registered tax agent who can extend lodgement deadlines (often into May 2026).
DIY Tax Returns: When It Might Be Okay
If your tax affairs are very simple, you might be able to self-lodge without professional help.
DIY is best suited for:
- Individuals with one employer and no deductions
- Students or low-income earners
- No investment or rental income
- No cryptocurrency trades or business income
Tools Available:
- ATO MyTax via MyGov (free)
- Online tax tools like Etax, H&R Block (low-cost)
Pros:
- Free or cheap
- Quick for simple returns
- Easy access through MyGov
Cons:
- Risk of missing deductions
- No strategic advice
- Mistakes can result in ATO penalties
- No audit protection or support
⚠️ Important: Many Australians assume their tax is simple—until it’s not.
Why Many Australians Choose a Tax Accountant Instead
Over 70% of Australians use a tax agent to lodge their return—and for good reason. Tax laws change frequently, and small errors can cost you thousands.
Benefits of engaging a tax accountant:
- ✅ Maximise your tax refund
- ✅ Get expert guidance tailored to your situation
- ✅ Stay compliant with the latest ATO rules
- ✅ Avoid costly mistakes
- ✅ Receive year-round support if needed
According to CPA Australia and the Tax Practitioners Board, qualified tax agents provide an essential service that often delivers far more value than their fee.
Key Benefits of Using a Registered Tax Accountant in 2025
Let’s take a closer look at the top reasons to consider hiring a tax accountant this year:
✅ 1. Access to Expert Advice
Accountants stay up to date with changes in tax law, industry deductions, and compliance rules. They understand how to interpret legislation and apply it to your specific case.
📘 Example: A work-from-home deduction in 2025 may differ from 2024 rules. An accountant ensures you’re not over- or under-claiming.
✅ 2. Claiming All Your Entitlements
Accountants know how to uncover hidden deductions, such as:
- Mobile phone and internet usage
- Vehicle and travel expenses
- Work uniforms and laundry
- Self-education expenses
- Property depreciation (if you’re an investor)
- Crypto trading losses
✅ 3. Reducing Risk of Audit
ATO audits can be triggered by unusual deductions or mismatched data. Accountants help reduce red flags and provide records that justify claims.
🛡️ In case of an audit, a registered tax agent can also represent you with the ATO.
✅ 4. Time Savings and Accuracy
Filing a return manually can be time-consuming and confusing. A tax accountant simplifies the process and helps you avoid errors that delay refunds or trigger reviews.
✅ 5. Extended Lodgement Deadlines
If you use a tax agent, you may qualify for extended deadlines—sometimes up to May 2026—depending on when you register with them.
When It’s Especially Important to Use a Tax Accountant
Here’s a quick checklist. If any of these apply to you, it’s highly recommended you engage a professional:
- 📌 You own an investment property
- 📌 You operate as a sole trader or freelancer
- 📌 You’ve traded cryptocurrency
- 📌 You’ve earned capital gains from shares or real estate
- 📌 You’re claiming home office expenses
- 📌 You’ve received Centrelink payments or grants
- 📌 You run a small business or lodge Business Activity Statements (BAS)
🧠 The more complex your tax situation, the more valuable a qualified accountant becomes.
How Much Does a Tax Accountant Cost in 2025?
Pricing Breakdown:
| Type of Return | Typical Cost (AUD) |
|---|---|
| Simple individual return | $100 – $180 |
| Individual with rental property | $200 – $400 |
| Sole trader or contractor | $300 – $600 |
| Small business annual return | $1,000+ |
| Crypto investor tax return | $250 – $600 |
Are Tax Agent Fees Tax Deductible?
Yes. The cost of preparing and lodging your tax return is usually deductible in the next year’s return.
🧾 This includes fees paid to a tax accountant, plus any travel costs incurred in visiting them.
How to Choose a Qualified Tax Accountant
Not all tax professionals are the same. Make sure your accountant is a registered tax agent, which you can verify at TPB.gov.au.
Checklist for choosing the right accountant:
- ✅ Registration with the Tax Practitioners Board (TPB)
- ✅ Experience with your income type or industry
- ✅ Clear fee structure with no hidden charges
- ✅ Availability during and after tax season
- ✅ Reputation and reviews from real clients
Can I Switch from DIY to an Accountant Later?
Yes. If you’ve started a return on MyGov but feel stuck, you can contact a registered tax agent at any time before lodging.
They can:
- Review what you’ve entered
- Provide advice
- Submit the return on your behalf
🔁 Even if you’ve submitted via MyGov before, you can use an accountant in future years.
FAQs: Accountants and Tax Returns in 2025
Q1: Do I still need an accountant if my employer sends info to the ATO?
A: Yes—pre-filled data doesn’t cover deductions or strategy. You still need to ensure accuracy.
Q2: Will an accountant get me a bigger refund?
A: Possibly. They know what deductions apply and how to structure them for maximum benefit.
Q3: What happens if my accountant makes a mistake?
A: Registered agents are bound by professional standards. You can lodge complaints and seek remediation via the TPB.
Q4: Can I use an accountant online?
A: Yes. Many accountants offer virtual consultations, document uploads, and digital signatures.
Q5: When should I contact a tax agent?
A: Ideally before 31 October. Registering early gives access to extended deadlines and better planning.
Conclusion: Should You Use an Accountant to Lodge Your Return in 2025?
While it’s possible to do your tax return yourself, the question is whether it’s wise to. For most Australians—especially those with anything more than a basic return—a qualified accountant provides tremendous value.
Final Takeaways:
- 📈 They can uncover deductions you might miss
- ⚖️ Ensure compliance and reduce ATO risk
- 🧠 Offer tailored financial insights and planning
- ⏱️ Save you time, stress, and potential errors
💡 In 2025, hiring a registered tax accountant is less about expense and more about smart financial management.
💼 Are You a Certified Tax Accountant in Australia?
Join Finistry—Australia’s growing directory for financial professionals.
Thousands of Australians are searching for accountants they can trust to handle their tax affairs. By listing your practice on Finistry, you’ll:
- ✅ Improve your local visibility
- ✅ Showcase your services and qualifications
- ✅ Reach more clients during tax time
- ✅ Build your authority as a trusted adviser
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Finistry: Connecting Australians with Verified Financial Experts.
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