Tax deduction for tax agent fees

Generally, the fee that you paid to a registered tax agent for taxation advices is always deductible. You can claim the cost of managing the tax affairs as a tax deduction in your income tax return. 

The expenses that can be deducted for managing your own tax affairs include expenses relating to:

  • preparing and lodging your tax return and activity statements
  • travel, to the extend that it is associated with obtaining tax advice
  • appealing to the Administrative Appeals Tribunal or courts in relation to your tax affairs, and
  • obtaining a valuation needed for a deductible gift or donation of property or for a deduction for entering into a conversation covenant.

The expenses relating to preparing and lodging your tax return and activity statements include costs associated with:

  • buying tax reference material
  • lodging your tax return through a registered tax agent
  • obtaining tax advice from a recognised tax adviser, and
  • dealing with the Tax Office about your tax affairs.

You can claim fees paid to a recgonised tax adviser for preparing or lodging your tax return if those fees were incurred in 2008-09.

You can also claim the cost of advice from a recognised tax adviser in relation to a family tax benefit claim lodged with the Tax Office.

 You cannot claim for the cost of tax advice given by a person who is not a recognised tax adviser. A recognised tax adviser is a registered tax agent, barrister or solicitor.

 Apart from all these, you can also claim a tax deduction for the interest charged by ATO.

 The deductible interest charged by ATO include

  • your late payment of taxes and penalties
  • the amount of any increase in your tax liability as a result of an amendment to your assessment, and
  • the amount of any increase in other tax liabilities such as GST or PAYG amounts

This article has been prepared for the purposes of general information and guidance only. It should not be used for specific advice or used for formulating decisions under any circumstances. If you would like specific advice about your own personal circumstances please contact our office.