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How much does Tax Preparation cost?

Average Price
$75-$220

What is the price of Tax Preparation?

Want to hire an accountant to help you prepare your taxes? Read our handy guide to find out how much tax preparation costs across Australia.

What is Tax Preparation?

Tax preparation is the process of reporting information relating to your personal or business income. There are various aspects involved in tax preparation, that will ensure you report your earnings correctly and pay the right amount to the government. Also, tax preparation will also find ways you can save money too. 

Accountants are the best professionals to help you with tax preparation, as they are qualified industry experts. Though this service comes at a cost, it is an excellent investment, with many accountants saving their clients more money than they spend on hiring their services. At the very least, it will offer you peace of mind that what is a legal obligation has been submitted accurately by a trusted professional.

How much does Tax Preparation cost? 

The cost of tax preparation ranges between $75 and $225, especially if you are simply reporting your personal income. 

However, for corporations, filing your taxes can cost anywhere up to $2,200. This is due to the increased time needed to go through more complex returns.

Tax Preparation cost
Average cost$225
Minimum cost$75
Maximum cost$2,200

While the cost of hiring an accountant may seem expensive, compared with preparing and completing your tax return it will save you a lot of time and hassle. Plus, given it’s so easy to make mistakes, it’s always worth having a professional take care of it for you. 

What changes the price of Tax Preparation? 

The cost of tax preparation varies depending on several factors, including:

  • Business type

  • Income level

  • Quality of bookkeeping

  • Additional services

  • Time

  • Experience

  • Location

Business type

The classification of your business will affect the cost of tax preparation because ultimately it will determine how complex your financial affairs are. 

Individual returns are usually the most straightforward to process, with fees starting at just $176. On the other end of the scale, company, partnership or trust returns can cost $2,200 and above.

Tax Preparation cost for businesses
Type of BusinessHighest average priceLowest average price
Individual return$200$176
Sole trader (not registered for GST)$500$350
Sole trader (registered for GST)$650$450
Company, partnership or trust return$2,200$440

The more aspects your tax return has to incorporate, the more costly the preparation will be. Some accountants will also charge additional fees for consultations which will bump up the price too.

If the accountant also offers bookkeeping services, it’s worth enquiring whether this would reduce the fee of your future tax preparation.

Income level

Generally speaking, if you’re on a lower income your tax preparation will be easier to complete, therefore cheaper. 

As you hit the top tax bands, there are a lot more sections to complete and aspects to consider. Plus, you’ll want your accountant to make sure they are saving you as much money as possible, which will take extra time. 

Quality of bookkeeping

If you want to save time, money and hassle with your tax preparation, don’t turn up to your accountant’s office and empty a bag of receipts on their desk! You must keep a good record of every cent that comes into your business and leaves it. 

Consider hiring a bookkeeper if you don’t have time to do this yourself, as ultimately it will impact your tax preparation. Your accountant needs a good overview of the state of your finances, which can’t happen without diligent record-keeping.

Additional services

Accountants offer a wide range of services from business forecasting to estate planning. You may wish to have tax preparation included as a package or add in other services as you need them. Or, some services may be added on that are essential for the proper completion of your tax preparation if applicable. All of which will affect the total cost.

Time

Accountants don’t typically charge by the hour anymore, though the amount of time your tax preparation will take will be factored into their quote. Complex financial affairs will require more time to sort through, therefore those individuals can expect to pay more for tax preparation.

Experience

As with any service you wish to hire, you will find professionals who are newly qualified and those who have decades of experience. Expect to pay more for seasoned professionals, versus those who have only just graduated. 

Depending on your business type (especially large corporations), you may require an accountant who specifically deals with your area of concern. After all, the larger your business, the more aspects will need to be looked at, and not all accountants will be qualified for this.

Location

Accountants who specialise in tax preparation will charge different rates depending on where they are based in Australia. 

The cheapest location is Perth, averaging $75. This increases to $220 in Sydney, which has much higher living costs than other areas of Australia.

Tax Preparation cost in Australia
LocationAverage tax accountant cost
Melbourne$195
Sydney$220
Adelaide$180
Brisbane$150
Perth$75

Is it worth getting Tax Preparation?

Tax is one thing that’s not only essential but can be highly stressful too. If you’re not an expert, then you may under-report how much you’ve earned or miss potential savings - all without even realising it! Therefore, it’s always worth getting an accountant to do your tax preparation for you. As experts in all things tax, they can point you in the right direction and make the whole process as seamless as possible. 

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