What is the difference between a Chartered Accountant and a regular accountant in Australia?

A Chartered Accountant (CA) has completed additional postgraduate training and practical experience beyond a standard accounting degree, and is credentialled by Chartered Accountants ANZ. This qualifies them to handle complex financial matters including tax planning, business structuring, SMSF auditing, and financial advisory work. A regular or general accountant holds a degree but typically does not hold the CA designation. At Verus, all our principals are Chartered Accountants, which means you receive specialist-level advice rather than generalist bookkeeping. This matters when your financial decisions have lasting tax or structural implications for your business or personal wealth.

How much does a tax accountant cost in Sydney?

The cost of a tax accountant in Sydney varies based on the complexity of your return and the services required. For a straightforward individual tax return, fees typically range from $150 to $400. For business tax returns (company, trust, or partnership), fees generally start from $500 and can rise significantly depending on the volume of transactions, payroll, and additional compliance work involved. At Verus, we offer transparent, fixed-fee pricing and a free initial consultation so you know exactly what to expect before you commit. Engaging a registered tax accountant rather than lodging yourself often saves more in deductions and maximises your return compared to the cost of the service.

What business structure should I choose when setting up a company in Australia?

Choosing the right business structure in Australia is one of the most important decisions you will make, as it affects your tax obligations, personal liability, and ability to grow. The four main options are: Sole Trader (simplest, lowest cost, but no liability protection), Partnership (shared ownership, each partner liable), Company (separate legal entity, limited liability, higher compliance costs), and Trust (flexible for asset protection and income distribution, but more complex to manage). For most SMEs and growing businesses, a company or discretionary trust structure offers the best balance of asset protection and tax efficiency. The right choice depends on your revenue, industry, number of owners, and long-term goals. Our chartered accountants at Verus can walk you through all options in a free consultation and set up the structure that works for you.

What is an SMSF and how do I know if one is right for me?

A Self-Managed Super Fund (SMSF) is a private superannuation fund you manage yourself, giving you direct control over how your retirement savings are invested. Unlike retail or industry super funds, an SMSF allows you to invest in a broader range of assets, including residential and commercial property, shares, and term deposits. An SMSF is generally worth considering if you have a combined super balance of at least $200,000 to $300,000, a long-term investment strategy, and the time to meet your trustee obligations. The ATO requires SMSFs to be audited annually and to comply with strict reporting rules. At Verus, our SMSF accountants manage the full setup, ongoing compliance, and annual audit requirements, so you can focus on building your retirement wealth without the administrative burden.

What is the difference between Xero and MYOB, and which is better for my business?

Both Xero and MYOB are leading cloud-based accounting platforms in Australia, but they suit different business needs. Xero is generally preferred by small businesses and startups for its clean interface, strong third-party app integrations, and real-time bank feeds. MYOB tends to suit businesses with more complex payroll requirements, multiple entities, or those that prefer a locally developed platform with strong ATO integration. At Verus, we are certified Xero Advisors and MYOB Partners, meaning we can implement, optimise, or migrate your accounting software regardless of which platform you use. Our team will assess your business size, payroll complexity, and reporting needs to recommend the right fit, so you are not paying for features you do not need.

What is a virtual CFO and does my small business need one?

A virtual CFO (vCFO) is an outsourced financial expert who performs the strategic functions of a Chief Financial Officer without the cost of a full-time executive hire. For small and medium businesses that need high-level financial planning, cash flow management, KPI tracking, and strategic advice but cannot justify a full-time CFO salary, a virtual CFO service fills that gap. At Verus, our virtual CFO service is available on demand, giving business owners access to strategic financial guidance when they need it most, whether that is during rapid growth, a restructure, a funding round, or when navigating a complex tax position. If you are a growing SME spending more time on financial decisions than on your core business, a virtual CFO is likely worth considering.

How can I legally reduce my business tax in Australia?

There are several legal strategies Australian business owners can use to reduce their tax liability. These include: choosing the right business structure (companies and trusts can offer significant tax advantages over sole traders); making pre-tax superannuation contributions; timing income and expenses around financial year end to manage taxable income; claiming all eligible deductions including home office, vehicle, equipment, and professional development costs; using small business tax concessions such as the instant asset write-off; and ensuring your business is split across family members or entities where appropriate. Tax minimisation is a specialist area and the rules change regularly with ATO updates and Federal Budgets. At Verus, our chartered accountants provide proactive tax planning as part of our annual service, not just at lodgement time, so you are always positioned to pay what you owe, and nothing more.

What is financial modelling and why does my business need it?

Financial modelling is the process of building a structured representation of a business's financial performance, typically in a spreadsheet or financial tool, to forecast future outcomes and support decision-making. A good financial model lets you test scenarios, for example what happens to your cash flow if revenue drops 20%, or whether you can afford to hire two more staff in the next quarter, before committing real money. Businesses commonly use financial models for raising investment, applying for finance, planning acquisitions, and managing cash flow through growth periods. At Verus, our financial modelling service goes beyond spreadsheets. We combine accounting expertise with strategic insight to build models that are commercially relevant, clearly presented, and designed to hold up under scrutiny from investors and lenders.

Do I need an accountant to set up a company in Australia?

Technically, you do not legally require an accountant to register a company in Australia. You can register directly through ASIC and set up an ABN through the Australian Business Register yourself. However, the registration step is only a small part of setting up a business correctly. Most business owners who go it alone without professional advice end up choosing the wrong structure, missing key compliance obligations (payroll, BAS, ASIC annual reviews), or setting up their books in a way that costs more to fix later. An accountant ensures your structure is right from day one for your tax position, liability protection, and growth plans. At Verus, we handle the full setup process for companies, trusts, and SMSFs, including ASIC registration, ABN and ACN applications, and accounting software implementation, so nothing falls through the cracks.

What is the difference between a bookkeeper and an accountant in Australia?

A bookkeeper manages the day-to-day recording of financial transactions, including invoicing, payroll, bank reconciliation, BAS preparation, and accounts payable and receivable. An accountant takes this data and uses it to prepare financial statements, lodge tax returns, provide tax advice, and guide broader business strategy. Many businesses need both. In practice, a bookkeeper ensures your records are accurate and up to date, while an accountant interprets that data to minimise tax, support growth decisions, and meet compliance obligations. At Verus, we provide both services under one roof. Our bookkeeping team works in Xero, MYOB, and Reckon, and our chartered accountants use that clean data to deliver accurate reporting, strategic tax advice, and business advisory support tailored to your goals.

How to Lodge a Tax Return in Australia: A Complete Step-by-Step Guide

Person reviewing tax return documents on a desk in Australia

1. Who Needs to Lodge a Tax Return in Australia?

Most Australian residents need to lodge a tax return if they earned income during the financial year (1 July to 30 June). But the rules are more specific than that.

You must lodge a tax return if any of the following apply:

You had tax withheld from your wages by an employer
You had gross income over the tax-free threshold ($18,200 in FY2026)
You ran a business or were self-employed as a sole trader
You received capital gains from selling shares, property, or other assets
You had investment income (rental income, dividends, interest)
You received a government payment (Centrelink, Veterans Affairs) above certain thresholds
You are under 18 and earned more than $416 from non-employment income

You may not need to lodge if your income was entirely below the tax-free threshold and you had no tax withheld. However, you should still check with the ATO or a Personal Tax Accountant, as failing to lodge when required attracts penalties.

If you are unsure, the ATO’s Do I Need to Lodge? tool at ato.gov.au can help. For anything more complex than a simple salary, getting professional advice is usually the smarter move.

2. myGov vs Tax Agent: Which Is Right for You?

There are two main ways to lodge your tax return in Australia: through the ATO’s myTax platform (accessed via myGov) or through a registered tax agent. Here is how they compare.

Factor	DIY via myGov (myTax)	Registered Tax Agent
Cost	Free	From ~$150 (individual) to $500+ (complex)
Lodgement deadline	31 October	Typically 15 May the following year
Best for	Simple salary, one employer, straightforward deductions	Multiple income sources, business income, investments, property
Pre-filled data	Yes — employer data, interest, govt payments auto-filled	Yes — agent software pulls the same data
Deduction accuracy	Your responsibility — easy to miss legitimate claims	Reviewed by a qualified professional — deductions maximised
Audit support	None — you handle ATO queries yourself	Agent represents you and responds to the ATO
Sole trader / business income	Possible — but complex to get right	Strongly recommended
Speed of refund	Typically 2 weeks online	Similar — agent lodges electronically
Investment property	Possible — depreciation schedules easy to miss	Recommended

The honest answer: if your situation is a single salary, standard deductions, and nothing unusual, myTax is fine. The moment you add a side business, a rental property, share dividends, or significant work-related expenses, a registered Chartered Accountant will almost always find more than they cost.

3. How to Lodge a Tax Return in Australia: Step by Step

Gather Your Documents and Income Information

Collect your payment summaries (or income statements from myGov), bank interest statements, dividend statements, rental income records, and any government payment summaries. For sole traders, you also need your business income and expense records. Have receipts for any deductions you plan to claim.

Wait for Pre-Fill Data to Load (After Late July)

If lodging via myTax, most income data from employers, banks, and government agencies is automatically pre-filled from late July onwards. Do not lodge before this data appears or you risk missing income already reported to the ATO, which can trigger an audit later.

Log In to myGov and Open myTax

Go to my.gov.au, log in, and select the ATO from your linked services. From the Tax menu, choose Lodge a Return. If you have not linked the ATO to your myGov account before, you will need your Tax File Number (TFN) and some identity documents to complete the linking process first.

Review and Confirm Your Pre-Filled Income

Check every pre-filled income item carefully. Employers report to the ATO, but errors happen. If a figure looks wrong, contact your employer before lodging. Add any income not pre-filled: cash income, rental income, overseas income, capital gains from share or property sales.

Add Your Deductions

This is where most people leave money on the table. Enter work-related expenses (uniforms, tools, professional subscriptions, home office costs), vehicle and travel expenses using the correct ATO method, self-education costs directly related to your current work, and any other eligible deductions. You must have receipts for claims over $300 in total work expenses. For a full breakdown of what you can claim, see our guide on Tax Deductions for Small Business in Australia.

Answer the Offsets and Rebates Questions

myTax will ask about tax offsets you may be eligible for: the Low Income Tax Offset (LITO), private health insurance rebate, spouse tax offset, and others. Answer honestly — missing an offset you are entitled to means a smaller refund.

Review Your Estimated Tax Result

Before you submit, myTax shows you an estimated refund or tax owing. If the result looks wrong (far higher or lower than expected), stop and review each section again or contact a tax agent before lodging. Errors corrected before lodgement cost nothing. Errors corrected after can attract penalties.

Submit and Check Your ATO Correspondence

Once you submit, the ATO processes your return (usually within 2 weeks for online lodgements). Check your myGov inbox for your Notice of Assessment. This confirms your final tax position and refund amount, or tells you what you owe and when. If you owe tax, payment is due by 21 November for self-lodgers.

Sole trader reviewing business income records for tax return lodgement — Sole traders lodge business and personal income in the same individual tax return.

4. Lodging a Tax Return as a Sole Trader

How It Differs from an Individual Return

Sole traders lodge their business income and expenses in the same individual tax return as their personal income — there is no separate company return. Your net business profit (after deductible business expenses) is added to any employment income you earned and taxed at your individual marginal rate. Our Taxation and Accounting team regularly handles sole trader returns and can ensure nothing is missed.

What You Need to Include

Total business income: all money received for goods or services, regardless of whether you received a payment summary
Business deductions: operating costs, vehicle expenses, home office, professional fees, insurance, marketing costs, equipment depreciation
Net business income or loss: if your business made a loss, specific rules apply — you may be able to offset it against other income, but only if you meet the ATO’s non-commercial loss rules
GST: if registered for GST, your BAS reporting is separate from your income tax return. Your income tax return uses GST-exclusive figures

PAYG Instalments

Once your business income reaches a certain level, the ATO will move you onto PAYG Instalments — quarterly prepayments towards your expected tax liability. These are credited against your final tax bill when you lodge. If you receive a PAYG instalment notice, you still need to lodge a full tax return at the end of the year.

Sole trader returns are significantly more complex than simple employee returns. A qualified tax accountant will typically find deductions a first-time lodger misses — and the fee is itself a tax-deductible expense.

5. 7 Common Tax Return Mistakes Australians Make

#	Mistake	Why It Costs You
1	Lodging before pre-fill is complete	Incomplete data may trigger an amendment or audit flag later
2	Claiming deductions without receipts	ATO’s data matching program flags unsupported claims during audit
3	Missing investment income	Dividends, interest and rental income must be declared — the ATO receives this data from financial institutions
4	Claiming 100% of vehicle expenses without a logbook	Logbook method requires 12 weeks of records; cents-per-km covers up to 5,000 km at $0.88/km for FY2026
5	Forgetting capital gains	Selling shares, crypto, managed funds or property triggers a CGT event — even a loss must be declared
6	Not lodging at all	Failure to Lodge penalty: $330 per 28 days up to $1,650. Interest accrues if tax is owed
7	Copy-pasting last year’s deductions	The ATO has publicly warned against this — deductions must reflect what you actually spent in the relevant financial year

Accountant reviewing tax documents and frequently asked questions with a client in Sydney — A registered tax agent can answer complex questions and represent you with the ATO.

6. Frequently Asked Questions

What is the deadline for lodging my tax return in Australia?
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If you lodge your own return through myTax, the deadline is 31 October each year for the previous financial year (ending 30 June). If you use a registered tax agent, you generally have until 15 May the following year — one of the most valuable benefits of using an agent. If you owe tax, payment deadlines differ depending on how and when you lodge.

Can I lodge my own tax return for free in Australia?
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Yes. The ATO’s myTax platform (accessed through myGov) is free and available to most individual taxpayers. It works well for straightforward returns: one employer, standard deductions, no investment income. Once your situation becomes more complex — business income, multiple investments, property, or significant deductions — a registered tax agent will typically save you more than their fee.

How long does it take to get a tax refund in Australia?
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The ATO typically processes online returns within two weeks. Paper returns take up to 10 weeks. Once processed, your Notice of Assessment is sent to your myGov inbox and refunds are deposited to your nominated bank account (usually within a few days of the assessment issuing). Amendments to prior-year returns take longer — allow up to 60 days.

What happens if I lodge my tax return late?
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The ATO charges a Failure to Lodge (FTL) penalty for late returns: currently $330 per 28-day period (or part thereof), up to a maximum of $1,650. If you owe tax, the General Interest Charge (GIC) also applies daily on the outstanding amount. If you are owed a refund, no penalty applies — but you do not receive your refund until you lodge. If you cannot lodge on time, contact a tax agent immediately. They can sometimes negotiate a deferral with the ATO.

Do I need to lodge a tax return if I earned below the tax-free threshold?
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Not necessarily. The tax-free threshold is $18,200 for FY2026. If your total income is below this and you had no tax withheld, you generally do not need to lodge. However, if any tax was withheld from your pay during the year (even if your income was below the threshold), you should lodge — because lodging means the ATO will refund that tax back to you.

Can I lodge multiple years of overdue tax returns at once?
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Yes, you can lodge multiple overdue returns. The ATO generally wants all outstanding returns lodged as quickly as possible. A registered tax agent can lodge multiple prior-year returns on your behalf, help negotiate any penalties where there is a reasonable excuse for the delay, and set up a payment plan if you owe tax across multiple years. Do not ignore overdue returns — the longer they go, the more expensive they become. Contact our Taxation and Accounting team to get your lodgements back on track.

Tax Deductions for Small Business in Australia: The Complete Claim Guide →

Superannuation Contribution Tax Deduction: What You Can Claim in Australia →

Not sure if you are lodging correctly?

Our Chartered Accountants lodge on your behalf — with an extended deadline to 15 May

We review your full income picture, find every deduction you are entitled to, and handle your ATO correspondence. Call us on 02 9980 1556 or book below.

Book a Free Consultation