What does it cost: tax returns

No one likes paying tax, but plenty of people like tax time if they expect to get a tax refund. But ensuring you maximise your refund — or minimising what you have to pay the taxman — calls for filling out your tax return carefully and claiming all the tax deductions you’re legally entitled to. Some people are happy doing this themselves, others get professional help.

Preparing and lodging own tax return by yourself costs absolutely nothing but your time. You can either use TaxPack, the paper-based return available from the Australian Tax Office (ATO) or newsagents, or complete and lodge your return online using the ATO’s e-tax system, an option almost 2 million Australians are expected to use this year. With this, the tax office says most returns are processed within 14 working days.

If you want some help you can easily get it – for a fee. Just make sure whoever you use is a registered tax agent. You can check this by contacting the Tax Agents Board.

Online tax return businesses exist, including for example E-lodge, which can prepare your tax return for between $34.95 and $64.95. This company says an accountant will review and lodge your return, and any refund should come your way in eight to 10 working days.

There are plenty of bricks and mortar tax agents to choose from. Two of the best known are ITP and H & R Block, with offices nationwide. ITP says fees vary depending on the complexity of a client’s income and deductions, but mostly range between $95 and $145.

You can also have your tax return prepared through any general accountancy firm. For a simple tax return, for example for an employee with no significant investments, Bassam Ghantous, a Windsor, NSW accountant, says a typical suburban or rural accountancy is likely to charge between $80 and $150 for a simple tax return, while a city firm would be more likely to charge about $250.

For more involved financial circumstances, such as for an employee with shares and an investment property, Ghantous said many accountants would charge in the range of $200 to $800 for a tax return. These higher fees include considering and calculating capital gains, depreciation, rental income and expenses, interest charges and dividend imputation.

For those with even more complicated financial arrangements, such as a husband and wife running a successful business, and involved in a company and/or family trusts, as well as holding a range of significant investments, Ghantous says a suburban accountant would probably charge in the range of $6000 to $8000 to prepare their tax return, while a high-profile city firm would be more likely to charge from $10,000 to $20,000.

These are big numbers, but trying to do your own tax at this level is just too hard for most people. A good accountant should be able to legally save you tax, offsetting their fees a little

Accountancy charges — or just a humble tax agent’s fees — are deductible.

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