Every year, millions of Australians open the ATO’s myTax platform and try to make sense of pre-filled income data, deduction categories, and lodgement deadlines. It feels free. But choosing to go DIY on your tax return instead of hiring a tax accountant has real costs. Sometimes those costs are invisible until the assessment arrives.
This article breaks down both options honestly so you can decide which puts more money back in your pocket.
What Does DIY Tax Filing Actually Cost You?
DIY via myTax costs nothing upfront. But it costs time, and it costs whatever deductions you miss. Most Australians spend several hours each year gathering records, decoding ATO categories, and second-guessing claims. If that time has value, DIY is not truly free.
The ATO provides myTax as a free tool accessible through myGov. It works well for a single-income earner with no business activities, investment properties, or major asset sales. The system pre-fills data from employers, banks, and health funds, which gives you a reasonable starting point.
It gets harder when your situation involves multiple income sources or investment assets. Rental properties with depreciation schedules require extra work. Shares and capital gains events require careful handling that myTax does not walk you through.
Miss a deduction you were entitled to, and you leave real money with the ATO. Claim something incorrectly, and you risk an amended assessment or audit review.
How Much Does a Tax Accountant Charge in Australia?
A standard individual return through a registered tax accountant typically costs between $100 and $290 in Australia. Complex returns involving rental properties, business income, or capital gains cost more. That fee is fully tax-deductible, which reduces the actual out-of-pocket cost further.
The exact fee depends on your location, the accountant’s experience, and how complex your affairs are. A sole trader return costs more than a simple PAYG return. A return with multiple investment properties costs more than a salary-only filing. Here is a general guide based on current market fee data:
| Return type | DIY via myTax | Registered tax accountant (est.) |
|---|---|---|
| One employer, no investments | $0 | $100-$150 |
| Salary and rental property | $0 | $200-$350+ |
| Sole trader or small business | $0 | $400+ |
| Company or trust | $0 | Varies by scope |
The headline price of DIY is zero. The real price includes your time and any deductions you missed, which can quietly exceed what an accountant would have charged.
There is also an important deductibility rule most people overlook. The ATO allows you to claim the fee you pay a registered tax agent as a deduction on your tax return. The deduction applies in the year you pay the fee, not the year the return relates to. A fee paid in August 2025 for your 2024-25 return is claimed in your 2025-26 return.
Can a Tax Accountant’s Fee Pay for Itself?
In many cases, yes. A tax accountant who knows your occupation and industry checks for deductions that myTax does not prompt you for. Finding one additional deductible claim worth $500 at a 30% marginal rate saves $150 in tax. At that point the accountant’s fee has largely paid for itself.
The value goes beyond individual deductions. A registered tax agent familiar with tax and accountancy across different entity types will identify where depreciation schedules, vehicle claims, and home office deductions have been missed. Negative gearing positions are another area that self-lodgers regularly under-claim.
For business owners and sole traders across Melbourne and the western suburbs, professional help with small business accounting typically returns more than the cost of the service. The more variables in play, the wider that gap becomes. Complex situations involving asset purchases, employees, and investment income all add to the benefit of professional help.
Who Benefits Most From Using a Tax Accountant?
If your finances involve more than one income source, any investment asset, or a business structure of any kind, a tax accountant is likely to return more than their fee. The more complex your affairs, the wider that gap becomes.
| Use a registered tax accountant if you: | DIY may be enough if you: |
|---|---|
| Earn business or sole trader income | Have one PAYG employer only |
| Own a rental or investment property | Have no investment income or assets |
| Had capital gains from shares or property | Did not sell any assets this year |
| Are a company director or sole trader | Have a simple standard deductions list |
| Missed lodging a prior-year return | Are comfortable navigating ATO systems |
| Want to claim depreciation or complex deductions | Are fully up to date on compliance |
What Happens If You Get Your Tax Return Wrong?
A lodgement error can trigger an amended assessment, interest charges, or a Failure to Lodge penalty. The ATO’s current penalty unit value is $330. For an individual, the Failure to Lodge (FTL) penalty starts at $330 for returns up to 28 days overdue. It adds $330 for each further 28-day period, up to a maximum of $1,650.
If you self-lodge, your deadline is 31 October each year. Miss it and the ATO can apply penalties from the next day. Engage a registered tax agent before 31 October and you gain access to their lodgement program. For most eligible clients, that extends the deadline to 15 May the following year.
That timing advantage matters for business owners managing cash flow or waiting on year-end records. If the ATO finds a problem in a return you prepared yourself, you handle all correspondence and corrections alone. When you work with a tax accountant in Melbourne, they manage any ATO correspondence arising from the return they prepared.
When Does DIY Tax and Accountancy Make Sense?
DIY works best when your tax affairs are genuinely simple. One employer. No investment income. No business structure. No assets sold during the year. If that describes your situation, myTax will pre-fill most data and your main task is checking numbers and adding standard work-related deductions.
Even in simple cases, a first-time conversation with a registered tax agent is worth considering. They can confirm what records your occupation qualifies for and check whether there are standard deductions you have been missing. That one conversation often saves more than the fee costs.
Frequently Asked Questions
Is it worth paying a tax accountant for a simple return?
For a single-income earner with straightforward deductions, the accountant’s fee may exceed any tax saving in a simple year. That said, the fee is deductible, and a review sometimes turns up a missed claim worth more than the service costs. If your situation involves anything beyond employment income, a tax accountant is likely worth it.
Can I claim my tax accountant’s fee as a deduction?
Yes. The ATO allows you to deduct the cost of using a registered tax agent to manage your tax affairs. The deduction applies in the income year you pay the fee, not the year the return relates to.
What if I have missed lodging a prior-year return?
A registered tax accountant can lodge overdue returns and liaise with the ATO on your behalf. If all outstanding prior-year returns are lodged by 31 October, your current-year return can still qualify for the extended lodgement program through a tax agent.
Do Melbourne tax accountants offer a free first consultation?
Many registered tax accountants in Melbourne will have an initial conversation at no charge. This lets you outline what your return involves, get a fee estimate, and confirm whether professional help makes sense for your situation.
