You can lodge an Australian tax return for free using the ATO myTax, yet many people still pay accountants hundreds or thousands of dollars. This guide explains who must lodge for the 2025-26 year, how to prepare, what fees to expect and the deadlines you need to meet. It covers myGov linking, when pre-fill data arrives, the Tax Practitioners Board register for paid agents, the ATO lodgement timetable and the penalties for late filing. Follow the concrete next steps at the end to decide whether to self-lodge or engage a registered tax agent.

Free DIY filing is available, but only registered tax agents may legally charge to prepare and lodge tax returns, and using one can also change your lodgement timetable. That mismatch is central to the choice most Australian taxpayers must make: save money by self-lodging with MyTax, or pay for an agent and gain extra time and professional cover where affairs are complex.

1. Confirm whether you must lodge a return

Start with the test of obligation. For the 2025-26 income year, which runs from 1 July 2025 to 30 June 2026, you must lodge a return if any of these applied to you during the year: 1) tax was withheld from payments to you, 2) you are an Australian resident with taxable income above the tax-free threshold of $18,200, 3) you earned Australian-sourced income as a foreign resident, 4) you made or can claim a loss from a prior year, 5) you were entitled to a private health insurance rebate but didn't claim it as a reduced premium, 6) you had a reportable fringe benefits amount, or 7) you were a sole trader or had business income.

Example: Emma works full time and had PAYG tax withheld, so she must lodge. Tom receives only certain non-taxable government payments and his situation is below the thresholds; he must submit a Non-lodgment advice so the ATO records he doesn't need to lodge.

2. Set up identity and myGov before you start

Create or verify a MyGov account and link it to the ATO before you try to lodge. The ATO and tax guidance note that first-time filers need identity verification and may be asked for details from prior returns, super statements or other records. If you receive Centrelink payments, check whether they're taxable because Services Australia feeds taxable payment details to the ATO.

Worked scenario: A first-time filer will usually be asked to confirm ID, and may need details from a prior-year pay advice or super statement. Those who don't link a myGov account can't access ATO pre-fill and will spend more time assembling paperwork.

3. Choose your lodgement method and understand who can charge

Individuals with straightforward affairs can use MyTax, the ATO’s free online tool available on desktop and mobile. Paper returns remain an option but are slower. The Tax Practitioners Board maintains the register of tax agents you can consult before engaging someone.

Only registered tax agents may charge a fee to prepare and lodge returns.

Example: If you are a PAYG employee with standard deductions, myTax will usually cover your needs at no cost. If you run a small business, an accountant can charge to prepare the Business and Professional Items schedule and lodge on your behalf, but you should check the agent is listed on the Tax Practitioners Board register first.

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4. Prepare records and time your lodgement to benefit from pre-fill

Most income records are pre-filled into the ATO form from employer PAYG income statements, banks, dividend and interest payers, super funds and Services Australia feeds. Those data feeds typically finalise in mid-to-late July after 1 July 2026, so the ATO and practitioners advise waiting until pre-fill data is complete to avoid having to amend a return later.

Required documents include PAYG income statements, bank interest records, dividend statements, rental and foreign income paperwork, capital gains documentation and receipts for deductions and business schedules. For sole traders, the Business and Professional Items schedule is needed and often requires GST and BAS reconciliation, which makes preparation longer and pushes fees higher.

Worked example: A taxpayer with rental income should wait until agent and bank feeds have finalised, check the rental income and expense items in pre-fill, and only then claim depreciation schedules and capital works amounts after reconciling their asset records.

5. Know the deadlines and mechanics of agent lodgement

If you lodge your own return you must do so by 31 October 2026 for the 2025-26 year. If you engage a registered tax agent before 31 October 2026 and you meet the agent program eligibility criteria, your lodgement deadline can extend, commonly to 15 May 2027 for taxpayers with a clean prior-year lodgement record and no overdue returns. The ATO’s staggered program can bring earlier agent deadlines for clients with more complex affairs or significant prior-year liabilities.

Failure to lodge by the applicable due date triggers Failure to Lodge penalties of $330 per 28-day period overdue, up to a maximum of $1,650, together with general interest charges on unpaid tax where applicable. Engaging a registered agent before 31 October 2026 is therefore a common choice for people who need extra time but must be arranged in time to qualify.

Scenario: Lydia has a straightforward return but a late tax debt from the prior year. Her agent program extension is likely to be restricted, so she must either settle the overdue return or prepare to lodge by the 31 October deadline herself.

6. Cost expectations and how fees interact with tax outcomes

Fees vary widely. For simple PAYG employees who use myTax, the effective cost is zero. Accountants typically charge in the low hundreds for straightforward individual returns with a single income source and basic deductions. Sole traders pay more because business reporting needs extra schedules, GST reconciliation and sometimes payroll or depreciation work. Company and trust returns are more complex and can run into the high hundreds or thousands for firms with GST, payroll, multiple assets or other compliance matters.

Accountants’ guides note that tax agent fees are often tax deductible, which reduces the after-tax cost of professional help and can make an accountant cost-effective where complexity risks missed deductions or an ATO review. The ATO also notes that online lodgements usually process faster, with many refunds issued within two weeks, while paper returns typically take longer, often up to 50 business days.

Worked example: A PAYG employee who pays a registered agent $300 may claim that fee as a deduction. After the tax benefit, the net cost is smaller, and the adviser may recover or increase deductions that more than offset the fee in certain cases. For a sole trader, the incremental time and reconciliation needed can easily double or triple a basic fee because of GST and BAS tasks.

7. Special programs, support and filing follow up

Low-income taxpayers can access the ATO’s Tax Help program, which provides free volunteer assistance for people earning $60,000 or less and runs from July to October. The program helps set up myGov accounts, lodge online, claim franking credit refunds and correct returns where needed. Taxpayers with Centrelink entitlements that affect childcare or other benefits should confirm their income with Services Australia as required for balancing government payments. The ATO also provides distinct lodgement pathways and timing rules for people leaving Australia permanently or those with outstanding prior-year returns.

After you file, finalise your return only once you have verified pre-filled entries and ensured you have documentary support for deductions and capital gains calculations. If you engage a registered agent to obtain extended deadlines, appoint them before 31 October 2026 and resolve any overdue prior returns that would remove the extension. If you don't need to lodge, submit a non-lodgment advice so the ATO records your status. Keep records for the statutory retention period relevant to your claims in case the ATO requests substantiation.

Practical scenario: Someone with a $55,000 salary and simple dividends should try Tax Help if eligible, link myGov to ATO, and lodge with myTax once pre-fill has completed. A sole trader with multiple income streams and employees should contact a registered agent early to confirm eligibility for later lodgement dates and to budget for higher preparation fees.

In short

First, check the obligation test: PAYG withholding or taxable income above $18,200 usually means you must lodge. Second, set up and link a myGov account to the ATO so you receive pre-fill. Third, weigh cost versus complexity: myTax is free for simple returns, while agents can cost hundreds to thousands but may extend your deadline. Fourth, engage a registered tax agent before 31 October 2026 if you need an agent extension. Fifth, use free ATO Tax Help if you earn $60,000 or less and qualify.

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If you want the extended lodgement timetable, engage a registered tax agent before 31 October 2026 and ensure you have no overdue returns. Otherwise, be ready to lodge your own return by 31 October 2026, or wait for the ATO lodgement window to open on 1 July 2026 so pre-fill data is available. In short: - Self-lodge with MyTax if you are a PAYG employee with simple deductions. It's free and covers most cases. - Use a registered tax agent if you run a business, have complex investments, or need extra lodgement time; check the Tax Practitioners Board register first. - Link your myGov account to the ATO and wait for pre-fill after 1 July 2026 to avoid doing an amendment later. - If engaging an agent, get a written fee quote and engage them before 31 October 2026 to access agent lodgement dates.

This article was created with AI assistance.