Accountant & Professional Fees — Australia Tax Rules

Claim the cost of accountants, tax agents, BAS agents, and other professional advisors.

Claimable: Fully claimable · Tax authority: ATO

ATO Rules

• Tax agent fees for preparing your individual income tax return are fully deductible.
• BAS agent fees for preparing and lodging your Business Activity Statements are fully deductible.
• Accounting fees for business bookkeeping and financial statement preparation are claimable.
• Legal fees for business contracts, disputes, and debt collection are deductible.
• Tax advice directly related to your business operations is deductible.
• Fees for personal financial planning or matters unrelated to your business income are NOT deductible.

Limits

No cap — must be incurred in earning your assessable income or managing your tax affairs.

Worked Example

Daniel pays his tax agent $850 to prepare his income tax return and $400 for quarterly BAS lodgement. He also pays $180 for a solicitor to review a client contract. Total deductible: $850 + $400 + $180 = $1,430.

Record Keeping

• Keep tax invoices from all professional advisors showing services provided
• Retain engagement letters from your accountant or tax agent
• Record all payments and match to invoices in your bookkeeping
• Separate business fees from any personal advisory matters

Frequently Asked Questions

Can I claim accounting software subscriptions?

Yes. Accounting and bookkeeping software (Xero, MYOB, QuickBooks, Reckon) is a fully deductible business expense as an operating cost.

Are legal fees for starting a business deductible?

Business start-up legal costs are generally deductible over 5 years as 'blackhole expenditure' under section 40-880 of ITAA 1997. Ongoing legal fees for business operations are deductible in the year incurred.

Can I claim the cost of a BAS agent?

Yes. BAS preparation and lodgement fees are fully deductible. Under the Tax Agent Services Act, only registered tax or BAS agents can charge a fee for preparing and lodging BAS — so ensure you use a registered agent.

Is the cost of a financial planner deductible?

Only the portion of financial planning fees directly related to managing your assessable income — for example, advice on investing business profits. Fees for personal financial planning (retirement planning, personal insurance) are not deductible as a business expense, though some may be deductible as investment-related costs.