The short answer for small business owners
Almost always yes. If you run a small business through any structure (sole trader / company / partnership / trust), the return complexity is materially higher than salaried tax returns. The only exception is a truly tiny micro-business (e.g., hobby selling under $20k/year that you've already determined is not assessable income) — but even those benefit from one-off Agent confirmation.
This guide covers the 5 small-business factors that drive Agent value.
What makes small business returns complex
1. Structure choice — and its tax implications
Small business owners use one of:
- Sole trader (ABN under personal name) — see sole trader guide
- Pty Ltd company (corporate tax 25-30%, dividend franking to owner)
- Partnership (income flows to partners)
- Discretionary (family) trust (income distributed to beneficiaries)
- Hybrid (e.g., trustee company + family trust beneficiaries)
Each has different lodgement requirements. Companies and trusts require their own returns + your individual return.
2. BAS / GST + PAYG-W if you have employees
- BAS quarterly (or annual if small turnover) — GST + PAYG-W reconciliation
- Single Touch Payroll (STP) reporting if any employees
- Superannuation Guarantee (SG) 12% (final scheduled rate, from 1 July 2025)
- WorkCover registration + premium calculation
3. Capital allowances + instant asset write-off
- Instant asset write-off threshold changes yearly (was $20k for FY2025, watch for FY2026 update in the Federal Budget)
- Pool depreciation vs individual depreciation choice
- Small business technology investment boost / energy boost (legislative — check current period)
- Trading stock valuation (FIFO vs weighted average vs replacement cost)
4. Family income splitting
Common scenarios:
- Spouse paid as employee (must be genuinely employed at market rate)
- Distribution through discretionary trust
- Dividends from family company
The ATO (ATO guidelines) Section 100A and Part IVA rules apply to trust distributions. PSI rules apply if income is from personal services.
5. Capital gains on sale or restructure
If you eventually sell the business:
- Small business CGT concessions (15-year exemption, 50% reduction, retirement exemption, rollover)
- Need to qualify (Maximum Net Asset Value test, Active Asset test, etc)
- Pre-planning matters — by sale time it's often too late to optimise
Decision matrix — small business owners
| Situation | DIY in myTax fine? | Agent recommended? |
|---|---|---|
| Sole trader < $10k turnover, hobby-like | 🟡 Maybe | 🟁 One-off Agent check |
| Sole trader $10k-75k turnover | ❌ Business schedule | ✅ Strongly recommended |
| Sole trader > $75k turnover (GST registered) | ❌ Complex | ✅ Strongly recommended |
| Pty Ltd company | ❌ Need company tax agent | ✅ Strongly recommended |
| Partnership | ❌ Partnership return | ✅ Strongly recommended |
| Discretionary trust | ❌ Trust return + distributions | ✅ Strongly recommended |
| Selling business this year | ❌ CGT concessions | ✅ Strongly recommended (pre-sale + post-sale) |
For company / partnership / trust returns, you essentially need a Tax Agent — these returns can't be done in myTax (which is individual-only).
Need a professional?
Need a professional? Browse every TPB-registered tax agent near you in the AusTax directory, or post a request and matching practices will contact you — free.
For entity-level returns (company / partnership / trust return), AusTax AI partner Agents may also handle, with separate scoping. a registered tax agent (see the directory)
If your structure is complex (multi-entity, multi-jurisdiction, with employees + WorkCover + SG), the Agent will refer you to a small-business specialist outside the standard fixed-tier scope.
When you might DIY (rare cases)
- Hobby business < $20k turnover, no GST registration, no employees
- You've confirmed with the ATO that it's not assessable income
- No equipment depreciation, no apportionment, no PSI
- All record-keeping in order
These are edge cases. For most small businesses, the Agent fee is a tiny fraction of the audit-risk reduction + deduction maximisation benefit.
Need Help With Your Tax Return?
Still unsure whether you need a tax agent? a registered tax agent (see the directory) Check our full decision guide to see if a tax agent is right for your situation.
*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
Almost always 3+ "yes" → Agent assistance is essentially self-paying.
See decision guide for the cross-profession framework.
AI analysis on this page is general information, not personal tax advice. Small business owners benefit substantially from review by a TPB Registered Tax Agent — and often need entity-level support beyond standard individual scope.