Benefits of filing my tax return with a registered tax agent

In Australia, when we engage a tax agent, we obtain certain benefits. But before understanding what benefits we can gain, it's essential to know who tax agents are. A tax agent is a qualified professional who must be registered with the Tax Practitioners Board (TPB) and is trained to:

- Assist you in preparing and filing your tax return.

- Provide services either online or in person.

- Be the only professionals authorized to charge for preparing and filing your tax return.

- Utilize a system for preparing your return shared with the Australian Taxation Office (ATO).

- Handle audits required by the tax office.

What should I consider when choosing my tax agent?

- The tax agent must be registered with the Tax Practitioners Board (TPB). You can verify this information on the TPB website.

- The tax agent must be qualified and have the required experience.

- Adhere to the Professional Code of Conduct.

Benefits

1. Ensuring correct filing

Hiring a tax agent guarantees that the tax return is filed correctly the first time, following current tax laws. It's important to note that information must be provided by the client, and omitting any details can impact the accuracy of the return.

2. 100% Deductible Fees

The fees paid for the services provided by a tax agent are 100% deductible for the following fiscal year. This means that if you paid $120 for the preparation and filing of your return in 2022, you can deduct the entire amount from your taxes payable in 2023.

3. Extended deadline

Individuals who engage a tax agent have an extended deadline for filing their tax return until May 17 of the following year. It's crucial to be up to date with your declarations to access this benefit.

4. Timely and Adequate Response to Audits

The tax agent ensures providing appropriate and timely responses to audits required by the tax office. When the ATO compares the information provided in the return with other sources (Medicare, banks, payroll, etc.) and finds discrepancies, additional information may be requested, and the tax agent ensures compliance with the stipulated rules.