Who This Guide Is For
This guide is for any Australian taxpayer who uses — or is considering — a registered tax agent or accountant to prepare and lodge their tax return. If you have ever wondered whether the fee you pay your accountant is tax deductible, or how to claim it correctly, this guide answers your questions with ATO (ATO guidelines)-backed specifics.
Can You Claim Tax Agent Fees?
Yes — fees paid to a registered tax agent, accountant, or tax adviser for managing your tax affairs are generally tax deductible in Australia under section 25-5 of the Income Tax Assessment Act 1997. The deduction is available in the year you incur the expense.
According to the ATO, you can claim a deduction for fees you pay to a registered tax agent for preparing and lodging your tax return, as well as for advice about your tax affairs.
1. Tax Return Preparation and Lodgment Fees
The most common claim. Fees paid to a registered tax agent to prepare, review, and lodge your individual tax return are fully deductible.
Example: You pay your accountant $220 to prepare and lodge your FY2025-26 tax return in August 2026. You claim the full $220 as a deduction in your FY2026-27 tax return — the year the expense was incurred.
2. Tax Planning and Advice Fees
Ongoing tax advice and planning consultations are deductible. This includes:
- Annual tax planning sessions with your accountant
- Advice on investment structures and tax implications
- Capital Gains Tax (CGT) calculation assistance
- Rental property tax advice
Example: Jenny pays $450 for a tax planning session in May 2026 to restructure her investments ahead of EOFY. She claims the $450 deduction in her FY2025-26 return, since the expense was incurred before 30 June 2026.
3. Tax Audit and Amendment Fees
If the ATO audits your return and you engage a tax agent to represent you, those fees are deductible. The same applies to fees for amending a previous year's return.
| Fee Type | Deductible? | Which Year? |
|---|---|---|
| Lodgment fee — standard return | Yes | Year expense incurred |
| Tax planning advice | Yes | Year expense incurred |
| ATO audit representation | Yes | Year expense incurred |
| Amendment of prior year return | Yes | Year expense incurred |
| Late lodgment penalty (ATO imposed) | No | N/A — penalties not deductible |
| General financial planning (non-tax) | No | N/A |
4. Travel to See Your Tax Agent
Travel costs to visit your registered tax agent for tax-related purposes are deductible. You can claim either:
- Cents per kilometre method: 88 cents per km (FY2025-26 rate) for work-related car travel
- Actual costs: Fuel, parking, tolls — with receipts
ATO guidelines: you must keep a logbook or diary record of the trip, including the date, distance, and purpose.
Example: You drive 30 km (round trip) to your accountant's office twice per year. 60 km total × $0.88 = $52.80 deduction.
5. Previous Year's Tax Agent Fees
If you paid tax agent fees in a previous financial year but forgot to claim them, you can request an amendment to that year's return. The ATO generally allows amendments for up to two years after the notice of assessment.
Common Mistakes
| Mistake | Why It's Wrong | What to Do Instead |
|---|---|---|
| Claiming this year's fee on last year's return | Tax agent fees are deductible in the year paid, not the return year | Match the deduction to the FY you paid the invoice |
| Claiming investment advice as tax advice | General financial planning advice is not tax-deductible | Only claim fees for tax-specific services |
| Forgetting travel costs to the accountant | Travel for tax purposes is a separate deductible expense | Keep a log of trips: date, distance, purpose |
| Not keeping the invoice | ATO may request evidence of the expense | Save your tax agent invoice for 5 years |
| Assuming DIY software fees aren't deductible | myTax is free, but paid software like an ATO-approved lodgment tool may be deductible | Check if the software is used for managing tax affairs |
Records to Keep
- Tax agent or accountant invoice showing service description and amount paid
- Receipt or bank statement confirming payment date
- Travel log for trips to see your tax agent (date, km, purpose)
- Engagement letter or agreement outlining the scope of tax services
Quick Checklist
- Confirm your tax agent is a registered tax agent with the TPB
- Keep your invoice — it must show the nature of the tax service
- Note the date you paid — claim it in that financial year's return
- Log any travel to visit your accountant (88c/km for FY2025-26)
- Separate tax advice fees from general financial planning fees
- If you missed claiming a prior year's fee, request an amendment within 2 years
*Disclaimer: This article is general information only and does not constitute tax advice. Individual circumstances vary. a registered tax agent (see the directory) Not sure if you need a professional? See our decision guide.*