Paying for professional help with your tax and financial affairs can feel like an extra cost, but in many cases you can claim those accountant fees as a deduction. This guide answers your top questions in clear Q&A format so you know when and how to claim. We’ll point out any state‑based quirks so there’s no confusion, keep it jargon‑light and SEO‑friendly, and arm you with everything you need before you lodge.

What types of accountant fees are deductible?

You can usually deduct fees paid to a registered tax agent or accountant for:

• Preparing and lodging your annual tax return
• Advice on your eligibility for deductions such as work‑related expenses
• Business activity statements (BAS) preparation if you’re registered for GST
• Payroll and superannuation compliance for employers
• Advice on structuring your business or trust to minimized tax

These fees are tax‑deductible under federal rules in the Income Tax Assessment Act 1997 (section 25‑5) and apply across all states and territories.

Can I claim fees for bookkeeping and BAS services?

Yes. If you pay an accountant or bookkeeper to:

• Keep your business records up to date
• Prepare and lodge your BAS or instalment notices
• Advise on GST, PAYG withholding or payroll tax registrations

Those costs directly relate to your income‑producing activities and are fully deductible. For GST‑registered businesses in NSW, Victoria or Queensland there’s no extra restriction – the deduction is claimed on your income tax return.

Are fees for financial planning deductible?

No. Fees paid for personal financial advice—such as retirement planning or investment strategy—are generally not tax‑deductible. The ATO considers these capital in nature and unrelated to producing your assessable income. Only fees that relate directly to managing your tax obligations qualify.

What about fees for setting up a company or trust?

Some initial setup fees count as capital costs and can’t be deducted immediately. However, you may be able to claim them over several years under capital works provisions:

• Company registration fees are a capital cost and are not immediately deductible

• Trust establishment fees can be included in your cost base for CGT purposes

If you incur ongoing accounting fees for trust compliance or distributions advice, those ongoing costs are deductible in the year incurred.

Can I claim fees for rental property accounting?

Yes. If you own investment property you can claim fees for:

• Preparing your rental property schedule

• Depreciation schedules for capital works and plant and equipment

• Advice on negative gearing strategies

These costs relate to your taxable rental income. Make sure your depreciation schedules comply with state‑based property laws—rates of capital works deductions can vary slightly in Queensland versus NSW, for example.

How do I claim accountant fees on my return?

1. Gather your invoices – keep copies of all fee statements from your accountant.

2. Identify the deductible portion – fees for tax‑related services are deductible; fees for personal or capital advice are not.

3. Lodge via myTax or agent – include the total deductible amount under “Other work‑related expenses” if you lodge yourself. Agents will handle this for you.

4. Keep records – retain invoices and a summary for five years in case the ATO reviews your claim.

Is there a limit on claiming accountant fees?

No fixed dollar limit applies to legitimate tax‑related fees. You can claim 100% of the amount you paid for deductible services. However, if an invoice covers both deductible and non‑deductible work, you must apportion and only claim the tax‑related portion.

Do small businesses get any extra benefit?

Small businesses with aggregated turnover under $10 million may use simplified depreciation and instant asset write‑off rules, but those relate to asset purchases rather than accounting fees. However, if you pay an accountant to advise on eligible small business concessions, those advisory fees remain deductible as normal.

Are there interstate differences I need to know?

Accounting fees for federal matters such as income tax, GST and PAYG are governed by the Income Tax Assessment Act and apply evenly across Australia. State‑based taxes (payroll tax, land tax or stamp duty) may require specialist advice and you can claim the cost of that advice as a deduction too. Always confirm the relevant state rates and thresholds via your state revenue office.

What records should I keep?

Maintain clear records to substantiate your claims:

• Tax agent or accountant invoices showing services performed
• Bank statements or credit card records of payments
• A breakdown if an invoice mixes deductible and non‑deductible services
• Correspondence that shows the nature of advice provided

Store these for at least five years after you lodge your return.

Claiming your accountant fees can reduce your tax bill and improve cash flow, whether you’re an employee, investor or small business owner. Keep your records in order and engage a registered tax agent to ensure you maximise your deductions without risk.

Ready to get expert tax advice and claim your accountant fees correctly?
Contact Latitude Accountants today for tailored support, clear guidance and hassle‑free lodgement.

📞 Contact Latitude Accountants
📧 info@latitudeaccountants.com.au
🌐 www.latitudeaccountants.com.au

Disclaimer

This information is general in nature and does not constitute financial or tax advice. Legislation and policies may change and individual circumstances vary. Always consult a registered tax agent or the ATO for advice specific to your situation.