Are tax agents worth their fee?

dmb0312 on 13/10/2014 - 21:30

Hi all,

for the last few years I've done my tax via e-tax online, as I was only working casually for most of the year.

I've been in a full time job for the the last 18 months and I'm now considering going to an agent to see if they can improve my refund or give me some advice.

The only deductions I know of are for Charity donations and my uniform.

I also have hecs/Help debt.

i called one agent today and they quotes $150 for them to complete the return which seems like a lot to me.

So my question is, are they worth their fee and what are the real benefits?

Financial

Comments

  • StewBalls on 13/10/2014 - 21:38
    +2

    A good tax accountant is worth their weight in gold…don't even bother with the big names like H&R Block etc, they just charge the client a fortune & farm the work out to barely trained contractors, shoddy as all shit!

    Shop around for a good accountant, they won't charge you as much (should be <$100 for a basic return) & you'll never look back!!! :)

    • dmb0312 on 13/10/2014 - 21:40

      Thanks, Im happy to pay around $100 but $150 seems overboard!!

    • [Deactivated] on 13/10/2014 - 22:28

      I go to one of the big names (tax smart), CA qualified with decades of experience does my simple return for $85. Couldn't go back to doing myself either!

      • Peck on 14/10/2014 - 09:35

        Hi jay29043, I am interested in a referral to whoever you personally use and are happy with. As Tax Smart is franchised, quality may vary between people/branches. If you want to allow private messaging thru OZB you should go to 'my account' 'settings' 'messaging' 'allow private messages'. You can then do private messaging if you like. Otherwise post here. Thanks, Regards Peck.

  • EyyBanane on 13/10/2014 - 21:43
    +2

    Does anyone have any experience on getting more returns through a tax agent that you'd calculated online?

    • [Deactivated] on 13/10/2014 - 22:33

      Yes, I do my own calculations before I go to my tax guy each year and I'm always better off at least by the margin of his fee. He's more aggressive with the deductions than I am, if I get pinged by the ATO I can just blame it on him and pay the difference without penalty. If I'm too aggressive myself I'm screwed

      • maximum on 13/10/2014 - 22:54
        +9

        Even though your accountant prepares the tax return you are the one that signs it and are responsible for making sure what is claimed in the tax return is correct. Going through an accountant who incorrectly claims deductions doesn't save you from penalties being applied - it really all comes back to the claimant.

        • [Deactivated] on 14/10/2014 - 01:51

          I agree in principle with this. Just to clarify nothing outright dodgy is occurring, what my guy does is push up the business use percentages up from my estimates, based on what the ATO will accept for my occupation and class of expenditure. Just the small things like phone, laptop depreciation etc nothing huge and nothing I can't explain.

          FYI per below the penalties won't apply so long as reasonable care was taken in making the statement relied upon for the deduction, and that the income tax position can be reasonably argued. I know people who have just paid shortfall with no penalty imposed. I say I am stuffed if I make a mistake on my personal tax return since all the penalties reference what a reasonable person in one's circumstances should have known (I am a commercial accountant who works with corporate tax so I'm expected to know my tax onions) so it's good to have another pair of eyes on it.

          https://www.ato.gov.au/General/Correct-a-mistake-or-dispute-…

  • Bonsaichop on 13/10/2014 - 21:59
    +2

    Depends on how complex your tax is. If its pretty basic, doing it yourself probably outweighs the saving of getting an agent to do it for you.

    If you have investments, work additional jobs, earn interest, run a small business on the side, have significant medical expenses then you should probably see one. If it is pretty straight forward there won't be much you can get extra.

    I run a small business and my accountant costs a bit extra, but has saved me many times over especially after a reporting bungle up ended up getting me audited for my pre-tax agent days!

  • Almost Banned on 13/10/2014 - 23:10

    On the upside their fee is deductible.
    The only shame is that you only get the deduction in the tax year you pay them - so this fee will be claimed in your next return, not the current one.

    • spychiatrist on 14/10/2014 - 00:35

      Hold that thought. Effectively, you are still 60% out of pocket, as you only get back 40% of what you pay your accountant. If it results to more refund money, then that's fine.

      • Almost Banned on 14/10/2014 - 00:48
        +2

        Well, strictly speaking the amount you get back on the tax agent would depend entirely on what tax bracket you fall into…

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