Tax agents value proposition still strong

Registered tax agents are still very much in demand when it comes to individuals completing their tax returns, according to the Institute of Public Accountants (IPA).

“The introduction of MyTax by the ATO this year has not reduced the overall number of people seeking assistance with their tax return preparation via the use of services offered by a tax agent,” said IPA chief executive officer, Andrew Conway.

MyTax is the new streamlined version of E-Tax for people with straightforward tax affairs which was introduced this tax season.  However, while paper lodgers and some E-tax users have migrated to MyTax, the overall number of taxpayers using tax agents has not reduced.

“While the process for lodging simple tax returns is becoming more streamlined with pre-filling, taxpayers are still turning to their tax agent and public accountant to organise their affairs as part of their annual tax health check.

“Historically more than 70 per cent of the public use a tax agent as their trusted adviser and this remains the case today.

“Consumers are realising that sound tax planning by a registered tax agent is an integral part of a broader strategic financial plan which can deliver real returns for wealth creation, succession planning or a comfortable retirement,” said Mr Conway.

The streamlining of income tax returns using the MyTax internet portal is expected to reap savings in the order of $156 million as part of the Government’s red-tape reduction package.