Should I see an Accountant now or later?

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  akd on 12/05/2015 - 11:35

  Unless you know good accountant, it will be good idea to visit and test a few. Some accountants are simply not good and just repeat information available on internet. Some accountants do help to be pro-active e.g. what you can save or which receipts to keep etc.

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  ProjectZero on 12/05/2015 - 11:43

  +3

  I've only ever used the accountants my parents used… so no help here, but congratulations on your first baby =)

  Have fun changing diapers =P

  • 

    blitz on 12/05/2015 - 15:46

    +1

    And zero sleep! :) Totally with it though!!

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  Smulder on 12/05/2015 - 11:43

  +3

  Speaking from the point of view of an accountant, your best bet is to go see an H&R Block type tax agent. They specialise in simple individual tax returns such as yours, with just a rental property and presumably salary income, and most likely the fee will be much more reasonable that an accountant.

  • 

    mskeggs on 12/05/2015 - 13:19

    +1

    This is quite reasonable advice, however consider the future too.
    It is likely that you will have increasingly complex financial affairs in future, and the consistency of using the same tax adviser over years has advantages.
    I've been using the same accountant for nearly two decades, and we have a relationship where he has seen our kids grow, several changes of house etc through to setting up an SMSF and business investments.
    He isn't the only advisor I use, but he is the one I trust most.
    Somewhat ironically, after writing that, I first met him via a cut-price tax service where he was picking up some extra work at tax time. He offered to handle our returns personally the next year.

    • 

      [Deactivated] on 13/05/2015 - 09:03

      "I first met him via a cut-price tax service where he was picking up some extra work at tax time. He offered to handle our returns personally the next year".
      You mean he stole your business from the company he was representing?

      • 

        mskeggs on 13/05/2015 - 15:39

        No, he did the tax return via the agency.
        He said he wouldn't be working for them the next year.

  • 

    dasher86 on 12/05/2015 - 15:30

    +3

    I find H&R Block type accountants to be horrible.
    You're most likely seen by a Tax consultant (their work is then reviewed by a tax agent?)
    Better to go straight to a registered tax agent.

    • 

      Smulder on 12/05/2015 - 15:38

      A simple individual tax return such as the OPs will almost certainly be processed by a junior employee no matter where you take the return to be prepared, be it a 'tax consultant' such as at H&R Block, or a recent uni graduate at a Chartered Accounting firm.

      • 

        dasher86 on 12/05/2015 - 15:49

        +2

        I still find it better to go to a local registered tax agent.
        The H&R Block accountants are hired seasonal.
        When I visited one i found that I knew more than the tax consultant that interviewed me.
        To me that did not give me confidence in them preparing my tax return.

      • 

        Smulder on 12/05/2015 - 15:55

        +2

        Fair enough :) I certainly don't have anything to gain in promoting H&R Block, I was just suggesting to the OP that in terms of cost effectiveness (which may be an issue considering the arrival of the new baby) that he will most likely find that type of tax agent cheaper. But if money is no option, then by all means go to an accounting firm to have your individual tax return prepared.

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  modsec802 on 12/05/2015 - 11:51

  +2

  whether or not we will be eligible for FTB when my wife stops working

  Rental losses do not offset your income for family tax purposes. If you earn a cent over 100k then your wife will get zero FTB-B. You may get some FTB-A but this is based upon the number of children and your combined family income (does not take into account any rental losses).

  Update: no point paying an accountant to tell you if you're eligible for FTB when this page can tell you for free: http://www.humanservices.gov.au/customer/enablers/online-est…

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  momov3 on 12/05/2015 - 12:30

  Personally, I think as long as he's got investment property which is going to be deductible against his taxable income(not FTB purposes), he needs an accountant to maximise his negative gearing.

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  RockyRaccoon on 12/05/2015 - 13:23

  +1

  but i dont know if its worth going to see an accountant now? Or just wait until after July/October?

  If you are going to see one, do it now as you will have tax affairs to look at before the baby is born, and that will be due in July. Looking at things after the tax year closes will limit options based on decisions you made before getting the advice and that may have a negative impact on your finances.

  Talk with friends and family and see it anyone has experiences with an accountant that they can then recommend.

  While AKD gives good advice, in reality how can you compare without having experience? Like Real Estate agents talk is cheap, results are the oinly way to judge, and believ me, getting advise which is wrong sometimes will only show up later (eg Tax Audit which doesnt go well). So family and friends wil be better sources for who to use.

  BTW the costs are tax deductible

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  twinbag on 12/05/2015 - 15:49

  +2

  If your wifes unit is fairly new it's worth getting a depreciation report done as you can deduct it from the rental income, an accountant can't do this for you.

  An accountant is a good idea for the first year so you know what can be deducted, after that you can do it yourself.

  It might also be worthwhile chatting to centrelink now, as some claims cannot be backdated past a few weeks and once the baby is out you'll have other things on your mind. The advice you get from them will vary wildly though depending on who you talk to. Some are good, most are bad and there's a crap load of form filling to do. Phone at 8am if you don't want to spend hours on hold.