The short answer for lawyers
For salaried solicitors / barristers / corporate lawyers on single PAYG with practising certificate + PII deductions — myTax often handles it. Anyone running a sole practice, working as a barrister (always sole-trader), in partnership, with significant CLE-funded study, or earning consulting fees on the side moves into Agent territory.
This guide covers 5 legal-specific factors.
What makes lawyer returns complex
1. Barristers are sole traders — always
If you're a barrister, you operate under your own ABN by default. This means:
- Business and Professional Items schedule (every year)
- Chambers fees, clerk fees, robing fees deductible
- GST registration almost certain (>$75k fee income)
- PSI rules apply — but barristers usually pass the unrelated-clients test
- CPD requirements + journals + Bar Practice Course retention
2. Sole practitioners + small firms
Solicitors who run their own firm:
- Practice management complexity (trust account vs office account)
- Income recognition (billed vs collected)
- Practising certificate + Law Society fees
- PII (Professional Indemnity Insurance) — significant deduction
- Employee on-costs (if any)
- Capital allowance for library / equipment
3. CLE + further qualifications
- Mandatory CLE/CPD hours per state (NSW 10, VIC 10, QLD 10, etc per year)
- LLM / Masters of Laws / specialist accreditation (Family Law / Tax / Wills & Estates)
- Bar Practice Course (if becoming a barrister)
- Specialist accreditation maintenance
4. Partnership distributions
If you're a partner in a firm (full equity or income partner):
- Distributions flow via partnership return → your individual return
- May include fixed draws + profit share + return of capital
- Tax instalments (PAYG instalments quarterly)
- Possibly trust distributions if firm structured via discretionary trust
5. Multi-jurisdiction practice
Common for corporate / commercial lawyers:
- Practising in multiple Australian states (separate practising certificates)
- Practising overseas (Singapore / Hong Kong / UK / US) part of FY
- International firm secondments
- Cross-border tax treatment
Decision matrix — lawyers
| Situation | DIY in myTax fine? | Agent recommended? |
|---|---|---|
| Salaried PAYG solicitor, single firm | ✅ Yes if no extras | 🟡 One-off check |
| Salaried PAYG + PII paid privately | 🟡 Doable | 🟡 Worth review |
| Barrister | ❌ Business + GST | ✅ Strongly recommended |
| Sole practitioner | ❌ Practice complexity | ✅ Strongly recommended |
| Partnership distributions | ❌ Partnership schedule | ✅ Strongly recommended |
| LLM / Masters + HECS | 🟡 Tricky deduction | ✅ Yes |
| Multi-jurisdiction practice | ❌ Residency + DTA | ✅ Strongly recommended |
Lawyer-specific deductions an Agent will check
- Practising certificate fees (state-specific)
- Law Society / Bar Association membership
- PII / Professional Indemnity Insurance (if not employer-paid)
- CLE / CPD courses + materials
- Specialist accreditation (Law Society SA / SLSA / etc)
- Robes, wigs, court attire (barristers)
- Chambers + clerk fees (barristers)
- LexisNexis / Westlaw / Practical Law subscriptions
- Legal textbooks + practice guides
- Self-education (LLM, Masters, specialist courses)
- Conference travel (Tax Institute, Bar conferences)
- Home office for after-hours brief work
- Phone work-use %
When myTax DIY is genuinely fine for lawyers
- Salaried solicitor, single PAYG, full FY
- Firm pays PII; you have only practising certificate + Law Society
- No partnership / barrister / sole practice
- No mid-year career-change study (LLM is usually deductible if related, but framing matters)
- No multi-jurisdiction practice
- Comfortable with work-related deductions schedule
Roughly 50% of mid-tier salaried solicitors can DIY; almost no barristers or partners can.
Need Help With Your Tax Return?
Complex situation? a registered tax agent (see the directory) Our partner agents review every detail for accuracy and compliance.
*Disclaimer: This is general information only and does not constitute personal tax advice. Consult a registered tax agent for advice tailored to your specific situation. Always verify against the latest ATO guidelines at ato.gov.au.*
6-point self-check before deciding
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See decision guide for the cross-profession framework.
AI analysis on this page is general information, not personal tax advice. Lawyers benefit from review by a TPB Registered Tax Agent experienced with practice management + multi-jurisdiction scenarios.