top of page
Logo t.png
Search

Can I Lodge My Tax Return Myself Or Should I Use An Accountant?

  • 14 hours ago
  • 14 min read

For the FY 2025–26 income year, self-lodgement is a valid option for many Australians. If someone has a straightforward salary-and-wages position, limited deductions, and no business or investment activity, lodging through myGov and ATO online services can be efficient and accurate. The ATO’s myTax system is designed for that type of return.


The decision changes when the return includes rental property, capital gains, sole trader income, foreign income, trust distributions, or a larger deduction profile. At that point, the trade-off isn’t just cost. It’s time, audit exposure, deduction accuracy, and whether the taxpayer can recognise issues before the ATO does.


Table of Contents



A practical way to decide is to match the lodgement method to the taxpayer profile. A PAYG employee with one job and ordinary deductions faces a different risk profile from a freelancer with BAS obligations or a landlord working through interest, depreciation records, and repairs. Both can lodge a return. That doesn’t mean both should approach it the same way.


In Australia, the ATO reports that individuals with straightforward tax situations can lodge DIY with 98.7% accuracy in error-free submissions through myTax, based on its large sample of individual lodgements and self-prepared returns through myTax or tax agent software, according to the ATO 2024–25 statistical compendium. That result supports self-lodgement for simple cases. It doesn’t mean the same result carries across to investment, business, or property returns.


Across Brisbane, a common pattern is that taxpayers often assess complexity by looking at how many jobs they had, not by looking at how many tax issues sit behind those jobs. Baron Tax & Accounting regularly sees returns that look simple on the surface but involve one rental property, a share sale, an ABN side income, or a deduction claim that needs more judgement than the taxpayer expected.


Feature

DIY Lodgement myTax

Registered Tax Agent

Best fit

Straightforward salary-and-wages returns

Returns with business, property, CGT, or multiple income streams

Cost

Lower upfront cost

Professional fee applies

Time commitment

Taxpayer gathers records and works through issues personally

Review, classification, and lodgement support are handled professionally

Deduction judgement

Taxpayer decides what is claimable

Agent applies tax law and experience to grey areas

ATO interaction

Taxpayer responds personally

Agent can assist with representation and objections

Audit support

Limited to self-managed response

Structured support if the ATO reviews the return


What is the difference between lodging my tax return myself and using a tax agent?


The basic difference is responsibility allocation. When a taxpayer self-lodges, the taxpayer handles document gathering, classification, deduction judgement, and ATO correspondence personally. When a registered tax agent is engaged, those tasks are still driven by the taxpayer’s records, but the review and interpretation are done professionally.


Where self-lodgement works well


Self-lodgement suits people with narrow tax affairs. A common example is an employee with one salary, standard bank interest, and a small set of ordinary work-related deductions supported by records. In that situation, myTax can be a sensible pathway.


The ATO’s data supports that outcome for simple returns, particularly where the taxpayer’s information is already reflected through pre-fill and there are few judgement calls. Lodgement can be completed directly via myGov or ATO online services, and for many households in Brisbane that’s entirely appropriate when there isn’t rental, business, or CGT complexity.


Practical rule: If the hard part of the return is gathering records rather than interpreting tax law, self-lodgement is often workable.

Where a tax agent changes the outcome


The difference becomes clearer once the return involves interpretation. Sole traders need to separate private and business costs, landlords need to classify repairs and capital items correctly, and investors need to report gains, losses, and offsets accurately. Those aren’t just data entry issues.


According to verified ATO benchmark material, accountant-assisted returns show 47% higher deduction claims on average, with $2,847 compared with $1,932 for DIY, and for taxpayers with incomes above $120,000 and investments, the return on engaging an accountant can exceed 4:1. The same verified data states that professional lodgement services can cut audit trigger risk by 65%.


A tax agent also changes what happens if the ATO asks questions later. The benefit isn't just form completion. It's structured review, issue spotting, and representation if the position needs to be explained or defended.


A separate practical issue is digital administration. Payroll, leave records, and year-end reporting are more integrated than they used to be, which is one reason some employees assume all data will flow cleanly into a return. It often does for simple wages, but not for every entitlement or timing issue. For a broader workplace context, LeaveWizard's digital leave insights help explain how digitised records can still leave room for misunderstanding.


The main trade-off


The trade-off isn’t “free versus expensive”. It’s low-cost self-management versus paid review and risk transfer.


Where the return is simple, paying for review may add little. Where the return is layered, the cost of missed deductions, incorrect treatment, amendments, or ATO follow-up can exceed the saving from doing it alone. In more complex situations, an online tax return service where a registered tax agent reviews the information before submission is one available option, including structured online tax return lodgement.


How does my tax situation affect which lodgement option is best?


Taxpayer profile is the most useful decision tool. The right answer for one person can be the wrong answer for another, even when both earn similar total income.


Four professional people reviewing financial documents, tax forms, and analytical charts in modern office and home settings.

Employee with one PAYG income


This is usually the clearest case for self-lodgement. If someone has one employer, no side business, no rental property, no share disposals, and straightforward deductions, the return is usually driven by employer reporting and ordinary substantiation.


That doesn’t remove the need for care. The taxpayer still has to decide what’s deductible, keep records, and review pre-filled information for completeness. But the risk is generally lower because there are fewer judgement-based items.


A Brisbane employee who works solely under PAYG and claims a modest set of work-related expenses often falls into this category. If the return can be read comfortably from top to bottom without needing to pause on classification issues, self-lodgement can be efficient.


Employee with investment income or shares


This profile often starts looking simple and ends up less so. Dividends, franking credits, managed fund distributions, and share sales can each create tax reporting issues that aren’t obvious from a platform summary alone.


The problem isn’t that these taxpayers can’t lodge by themselves. It’s that the return includes more points where a figure has to be interpreted rather than copied. If there was a share disposal, a capital loss carried forward, or reinvestment history to reconcile, the error risk rises.


Returns become harder when one event affects several labels. A share sale can affect capital gains, carry-forward losses, record keeping, and amended cost base calculations at the same time.

For this group, a professional review often makes sense even if the person still wants a largely digital process. That’s especially true where the taxpayer has moved beyond basic salary and now has several passive income sources.


Property investor or landlord


Landlords are one of the clearest examples where complexity is underestimated. Rental income is only one part of the issue. The return may also involve loan interest apportionment, agent fees, repairs versus capital works, depreciation schedules, borrowing costs, and ownership splits.


The ATO’s intensified data-matching program cross-checks 99.8% of returns against third-party data, flagging 1.2 million discrepancies in a single year, and verified data notes that self-lodgers face higher error rates, particularly with rental income or CGT, leading to average penalties of $1,200 plus interest. The same verified material states that engaging a tax agent can reduce audit adjustment rates by 40% through professional representation.


That matters in practical terms. A landlord in Brisbane or Rochedale South may think the difficult part is entering rental income and interest. In reality, the more difficult part is determining whether expenses have been categorised correctly and whether the property records support the tax treatment if questioned later.


For many landlords, the issue isn’t speed. It’s whether they want to carry the interpretive risk personally.


Sole trader or freelancer


DIY starts to break down more quickly for sole traders and freelancers. They often deal with mixed-use expenses, BAS and GST consequences, business-use percentages, motor vehicle records, home office claims, super obligations, and timing differences between invoicing and payment.


For Australian sole traders and freelancers, verified ATO-related data shows that 68% of those using DIY or AI tax tools underclaim deductions by an average of $4,500 compared to those using accountants, and freelancers face a 22% error rate on returns due to missed BAS obligations and super guarantee rules. Those figures explain why seemingly small businesses can create disproportionate tax risk.


A sole trader in Rochedale South who invoices clients under an ABN, buys equipment, works partly from home, and registers for GST isn’t dealing with a “personal return with a few extras”. That person is dealing with a business compliance environment that flows into the individual return.


For that profile, the key questions are:


  • Are business and private expenses clearly separated

  • Are BAS records consistent with year-end figures

  • Is super treatment understood where required

  • Do the records support every deduction being claimed


If the answer to any of those is uncertain, a registered tax agent usually adds value through review and consistency checking. Where a freelancer is still formalising the business side, ABN registration support is one structured option for setting up the compliance framework correctly.


Higher-income taxpayer with multiple moving parts


Once income rises and investments expand, the return often stops being routine. There may be salary, bonus income, dividends, interest, managed fund distributions, rental activity, foreign income, capital gains events, or trust-related items.


Verified benchmark data states that for incomes over $120,000 with investments, accountant ROI can exceed 4:1. That doesn’t mean every higher-income taxpayer must use an accountant. It means the economics can shift because more deductions, offsets, and reporting interactions sit inside the return.


A practical example is a Brisbane professional who earns PAYG income, holds an investment property, receives dividends, and sells units in a managed investment during the year. The complexity isn’t any single item. It’s the interaction between them, and the consequences if one piece is missed.


The more a return depends on judgement rather than simple pre-fill, the stronger the case for professional review.

What are the costs, deadlines, and audit risks involved?


The practical decision usually comes down to three things. What will it cost, how long will it take, and what happens if the return is wrong.


Cost and time


Self-lodgement usually has the lowest upfront cost because there is no professional preparation fee. That benefit is real. It’s one reason many simple employees sensibly lodge on their own.


The hidden cost is time and the risk of getting a tax treatment wrong. Taxpayers often think in terms of “how long it takes to enter the return”, but the actual time drain sits in gathering records, checking classifications, and revisiting issues when something doesn’t reconcile. A preliminary estimate can help frame likely tax outcomes before any final choice is made, and a tax calculator for Australian income tax can be useful for that purpose.


Deadlines and practical timing


Self-lodgers need to work to the ATO’s direct lodgement deadline. If a taxpayer is lodging their own return, timing matters because waiting too long removes flexibility.


Using a registered tax agent can mean access to extended lodgement dates where the taxpayer is properly on the agent’s list and all ATO requirements are met. The exact deadline depends on the taxpayer’s circumstances and the agent arrangement, so it shouldn’t be assumed automatically.


For direct ATO guidance, the ATO page on lodging your tax return is the relevant official reference.


Audit risk and ATO data-matching


The most overlooked part of “can i lodge my tax return myself or should i use an accountant?” is what happens after submission.


Verified data states that the ATO’s data-matching program cross-checks 99.8% of returns against third-party data, identifying 1.2 million discrepancies in a single year. That means a return is no longer assessed in isolation. Employer data, bank information, and other reporting sources are compared against what the taxpayer lodged.


For self-lodgers, the higher-risk areas are usually the ones that involve interpretation, not payroll. Rental claims, CGT treatment, side income, and mixed-use expenses are common pressure points. Where an error creates tax debt or penalties, some taxpayers also need to understand repayment and relief pathways.


A preparation checklist before lodgement


Before either method is chosen, it helps to organise the file first.


  • Confirm identity details so bank account and personal information match ATO records.

  • Collect all income statements before starting, including salary, investment, and business records.

  • Separate deduction categories rather than keeping a single pile of receipts.

  • Review unusual events such as asset sales, new rental property activity, or foreign income.

  • Check prior ATO correspondence in case there are carry-forward items or unresolved issues.


In more complex situations, individuals may have their return reviewed by a registered tax agent to ensure compliance and accuracy.


What documents do I need to lodge my Australian tax return?


Good lodgement starts before the form does. Most errors happen because the taxpayer is working from incomplete records, or because documents are present but not organised in a way that makes the tax treatment clear.


For a fuller checklist arranged by return type, this guide to documents needed for an Australian tax return is a useful reference point.


Income records


Start with every source of assessable income, not just the largest one.


  • Salary and wages records, including income statements and any employment termination details if relevant.

  • Bank interest and dividend statements where investment income was received.

  • Managed fund and trust distribution records where applicable.

  • Rental income records including statements from managing agents.

  • Business income records for sole traders, freelancers, and contractors.

  • Foreign income details if any overseas amount may need to be reported in Australia.

  • Capital transaction records if shares, property, or other CGT assets were sold.


A common cause of amendment is that taxpayers gather their employment records carefully but treat investment paperwork as secondary. From a tax perspective, it isn’t secondary.


Deduction records


The next file should be every expense being claimed, grouped by type.


Some taxpayers keep every receipt but still struggle because the tax question is not “was money spent?” but “what was the purpose, and is the claim supportable?” That is particularly relevant for mixed-use expenses and home-based work.


  • Work-related expense records where there is a clear connection to earning employment income.

  • Rental property expenses such as interest statements, agent fees, council rates, insurance, and repair documentation.

  • Business expenses including software, subscriptions, equipment, travel records, and motor vehicle evidence where relevant.

  • Super contribution records where a deduction or offset may depend on contribution treatment.

  • Tax agent fee records from the prior year, if deductible.


Records should answer three questions clearly. What was paid, when was it paid, and why was it incurred.

Other records and identity items


Some documents don’t sit neatly in income or deductions but still matter.


These include prior year return information, notices from the ATO, bank account details for refunds, and records showing ownership percentages for jointly held assets. For taxpayers in Brisbane with property or business interests spread across family members, ownership evidence is often as important as the expense receipt itself.


If an accountant is being engaged, the quality of these background records often determines whether the review is efficient or prolonged.


How do I choose and work with a good tax accountant in Brisbane?


The right accountant isn’t just someone who can lodge a return. The better test is whether they can identify the risk areas in that taxpayer’s circumstances and explain them clearly.


A professional accountant discussing financial documents with a client in an office overlooking Sydney harbour.

What to check before engaging anyone


Registration status is the starting point. A taxpayer should make sure the person is a registered tax agent and is handling returns in the types of matters relevant to the file.


Specialisation matters more than many people realise. Someone with a simple employee return doesn’t need the same depth as a taxpayer with rental property, CGT, foreign income, or trust issues. For a local option framework, some taxpayers compare direct self-lodgement with using a tax accountant in Brisbane depending on how much review they need.


Verified data is useful here. For individuals with incomes over $120,000 and investments, the ROI on hiring an accountant can exceed 4:1, accountant-assisted returns show 47% higher deduction claims on average, and professional lodgement services can reduce audit trigger risk by 65%. Those figures don’t answer who to choose, but they do explain why choosing carefully matters.


Questions worth asking


A short discussion can reveal whether the accountant is suited to the file.


  • Ask how they handle your profile rather than asking only about fees.

  • Ask what documents they want upfront because that shows how they approach review quality.

  • Ask how they deal with ATO queries so it’s clear what support exists after lodgement.

  • Ask whether they regularly handle property, sole trader, or investment returns if those items apply.


For taxpayers comparing fees and service scope, this Brisbane tax accountant cost guide can help frame the discussion.


Why local context can matter


For some taxpayers, location is irrelevant because everything is digital. For others, local access is still useful. A business owner in Brisbane who needs to discuss BAS consistency, payroll records, and year-end tax treatment may prefer a firm they can meet in person if required.


That can be especially practical in Greater Brisbane and nearby suburbs such as Underwood, Springwood, and Sunnybank, where many taxpayers mix employment income with side business or investment activity. A local office can also help when identity documents, property records, or historical files need to be reviewed physically. One local reference point is the office at 758 Underwood Road, Rochedale South QLD 4123.


Frequently Asked Questions


Can a person lodge their own tax return if they have a rental property?


Yes, they can. The better question is whether they can correctly classify income, interest, repairs, capital items, and ownership details without professional review. Rental property returns often look manageable until expense character and record support become the issue.


Is myTax enough for most employees?


For many employees with one PAYG job and ordinary deductions, yes. That profile is usually the strongest case for self-lodgement because the return is narrower and often supported by pre-filled data. The answer becomes less clear once investment, side income, or CGT issues are added.


Should a freelancer use an accountant instead of an AI or DIY tool?


For many freelancers, professional review is sensible because the risks sit outside the return itself. BAS obligations, business-use apportionment, super issues, and record consistency often create major compliance problems. Where business activity is involved, the return is only one part of the tax picture.


Does using an accountant guarantee a bigger refund?


No. A larger refund isn’t guaranteed, and it shouldn’t be the test. The better test is whether the return is complete, supportable, and structured correctly under the law. In some cases the main value is risk reduction rather than a larger immediate refund.


What if a taxpayer already lodged and then realises something was missed?


That usually means reviewing whether an amendment is needed. The correct response depends on what was omitted and whether the issue affects tax payable, deductions, or reporting categories. If the missed item involves business income, rental property, or capital gains, early review is usually better than waiting for ATO contact.


Summary and Key Considerations


The answer to can i lodge my tax return myself or should i use an accountant? depends on complexity, not confidence alone.


Self-lodgement suits many straightforward employee returns. Once the file includes rental property, share disposals, sole trader income, foreign income, or layered deductions, the decision should be based on review quality, time, and ATO risk rather than fee alone. For taxpayers in Brisbane, that often means assessing whether the return involves interpretation or routine data entry.


The key timing point is that self-lodgers need to meet the standard ATO deadline, while registered tax agent clients may have extended time where their arrangements are properly in place. For more complex situations across Brisbane and South-East Queensland, professional review can be a practical compliance tool rather than just an administrative convenience.


Practical Takeaway


A useful self-check is simple. List every income source, every deduction category, and every event that required judgement during the year. If the return still looks straightforward after that exercise, self-lodgement may be appropriate. If the list includes business activity, rental issues, CGT, or unclear treatment of expenses, review becomes more valuable.


This content is general information only. Outcomes depend on the taxpayer’s own facts, records, and residency or investment position. Anyone unsure about their reporting obligations should consider obtaining professional advice before lodgement.



Baron Tax & Accounting 758 Underwood Road, Rochedale South QLD 4123



 
 
 

Comments

Rated 0 out of 5 stars.
No ratings yet
Add a rating
bottom of page