BAS and reporting
Tax agent
A tax agent is a professional registered with the Tax Practitioners Board who can prepare and lodge tax returns and give tax advice for a fee.
A tax agent is a registered professional who provides tax services to the public for a fee. These services include preparing and lodging income tax returns, BAS and other documents, giving advice about tax obligations, and representing clients in dealings with the ATO. Tax agents are regulated by the Tax Practitioners Board under the Tax Agent Services Act, and the register is public.
Using a registered tax agent has several advantages. They can lodge returns under their lodgment program, which often provides additional time compared with the standard due dates, as long as you are on their client list and meet the conditions. They know the rules, can spot deductions and credits you might miss, and can help avoid errors that cause penalties. They also deal with ATO correspondence.
Tax agents must meet professional standards. They need appropriate qualifications and experience, must be fit and proper persons, must hold professional indemnity insurance and must follow a code of professional conduct. If you have a complaint, you can raise it with the Tax Practitioners Board. If you engage someone who is not registered, you may not have the same protections, and they should not be charging for tax agent services.
Choosing the right person matters. Some tax agents specialise in individuals, others in small business, property or trusts. Ask about their experience in your industry and your type of structure, what their fees include, and how often they will communicate with you. Compare approaches, but remember cheaper is not always better if it leads to errors or missed opportunities.
Engaging an agent does not remove your own responsibility. You are still legally responsible for the accuracy of what is lodged, so provide full and honest records, respond to queries promptly, and review the return before it is lodged. If you give incorrect information, penalties can still apply to you, although agents who take reasonable care may reduce some risks.
Authorise your agent properly through ATO systems and revisit the authority if you change advisers. Keep your own copies of lodged returns and supporting documents for five years. This is general information only, so confirm any specific question with the ATO or a registered tax professional.
Worked example
Jordan, a sole trader, gives her tax agent a folder of income and expense records and the final BAS summaries for the year. The agent prepares her income tax return, identifies a $2,640 equipment purchase (including GST of $240) that was coded as a repair, and corrects the treatment. Jordan reviews the return, approves it, and keeps a copy for her records.
Practical tips
- Check that the person is on the Tax Practitioners Board register before paying for tax advice or return preparation.
- Give your agent complete records and review what they lodge, as you remain responsible for it.
- Ask what is included in the fee before you start, including ATO correspondence and amendments.