Many Australian’s file and lodge their own tax returns each year, utilising only a limited source of tax knowledge they have from both word of mouth and what they find on the internet.
Did you know that if you were to use a tax accountant for your return you would pay a small fee but receive a much greater return on your tax?
Its true! Tax accountants are in business for a reason, learn why I use a tax accountant when doing my tax return.
What is a tax accountant?
A tax accountant is a qualified accountant in Australia that has dedicated their profession to understand how the Australian tax laws and tax systems operate. By understanding how the ATO operates and the taxes and deductions that exist, a good tax accountant can help you deduct a lot of money from your annual tax bill, potentially saving you $1000’s.
Why use an accountant?
I will explain the reasons why you should use a tax accountant in dot form below to make it easier to read;
- They will find deductions you never knew existed.
- They will help you learn how to organise your files for next year.
- The cost of seeing one is tax deductible for the following year.
- If you use a tax accountant, filing your tax in July will allow you to not pay any tax that is owing until the following year because you are registered with a tax agent.
- A good tax accountant will help you understand how to maximise your finances and always be safe and legal in operating under the rules the ATO provide.
- Last but not least, its convenient! Get someone else to do the most boring thing you have to do each year!
How much does it cost?
A simple tax return can cost between $50 by a small-time tax accountant, $180 for a return that requires multiple income streams and investment auditing all the way through to the thousands of dollars for a business return involving employees.
Real life example of the benefits
I have an ABN to do contract work while I still work full time during the day. This ABN meant that I earnt side money throughout the year that needed to be included in my tax return. I decided to put my tax in a high interest bank account to save and earn more money while I awaited the time to pay my tax, at this time I decided to get a tax accountant for the first time.
A friend of mine in the same situation did not want to get a tax accountant as they believed they could use E-Tax instead to save time and money.
I, however, paid $150 and got my return done. I did it myself originally to see what return I would get and it said I owed the ATO $3000 tax – my accountants return however only stated that I needed to pay $350 tax.
That is a saving of $2650 for the cost of $150. Tell me that is not the best savings tip you have heard all year?
Do you have an accountant?
Who do you use and is it worth the money? Or is it more of a convenience thing for you?