Do you really need an accountant to do your tax return?
If no one has done so yet, let me be the first to wish you a happy end of financial year, a day I'm sure you've been counting down to on your calendar, staring wistfully out the window as you awaited its arrival. Well, wistfully stare no more, as we are officially in the 2026 fiscal year, and as the saying goes, it's tax return time baby!
If you don't think about all the tax you've paid for the past 12 months, getting your tax return is basically like free money (unless you end up owing tax, in which case, I have no silver lining for you).
Plus, with the awful weather in Sydney and Melbourne at present, what better time to curl up on the couch and start tallying up your deductions? You could even invite a friend!
What's the problem?
I am embarrassingly eager to do my return (if that's not obvious), but not everyone is so crazy about the idea. Data from the ATO shows about two thirds of Australians pay a tax agent to handle their affairs, while the remaining third of us do it ourselves. If that sounds like a lot, that's because it is − Australia has one of the highest rates of tax agent use in the OECD.
Loading
The Tax Office doesn't break down that data by age, but I'd bet that most people employing tax agents would be on the older side, while younger workers are more likely to do it themselves.
There are a few reasons for this, one of the biggest being that the online tax lodgment service, MyTax, has only been around for a decade or so, and its e-Tax predecessor was by all accounts a complete nightmare.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Australian
an hour ago
- The Australian
Smarter ways to build beyond super
This article is sponsored by Generation Life Australians with larger superannuation balances are facing a new conceivable financial reality – and many are starting to question if their nest egg is still in the right place. With the government determined to impose an additional tax on earnings on super balances over $3 million, there's growing interest in how to restructure wealth more effectively. Although the changes are yet to become law, they represent one of the most significant shifts in superannuation in recent memory. But what do these changes actually mean – and what are the options for those looking to protect and grow their retirement wealth? Why the proposed changes matter Under the proposed changes, Australians with superannuation balances above $3 million will be taxed an additional 15 per cent on notional earnings relating to the portion above that threshold. While this will only apply to a small proportion of the population, it has created a ripple effect – especially among high-income earners and those with growing portfolios. 'The issue isn't just for those with more than $3 million in super now,' said CEO of Generation Life Felipe Araujo. 'It's for people who are on track to exceed that balance in the future – professionals, business owners, high-income earners. It's important they're thinking ahead.' There's also confusion around how earnings will be calculated, with unrealised gains (paper profits) potentially being taxed. This has raised further concerns about the fairness and transparency of the proposed changes. Mr Araujo added: 'Clients are concerned that they'll be taxed on performance that hasn't been realised yet. That's something people are still trying to understand – and rightly so.' Exploring your options For those rethinking their retirement strategies using super, the good news is there are alternatives. Diversifying into other tax-effective investment vehicles can help manage the overall tax impact, improve access to funds, and reduce reliance on superannuation as the sole retirement strategy. Founder and managing director of Family Wealth Advisory Michael Bova said clients are increasingly exploring alternative strategies. 'They're asking, 'What other options are available to grow my wealth efficiently and sustainably?' And they're more open than ever to structures they may not have considered before – especially those that offer flexibility and long-term benefits, like investment bonds.' Mr Bova noted that while tax considerations are becoming more prominent, they're not the only factor driving decisions. 'Clients aren't making choices based on tax alone. They're weighing performance, access, control, and legacy planning. But the proposed Division 296 changes have brought tax more sharply into focus, prompting people to think more strategically about how their investments are structured.' These options include family trusts, companies and investment bonds – the latter gaining new attention as both a tax-effective and flexible solution. Generation Life chief executive officer Felipe Araujo (left) and Family Wealth Advisory founder and managing director Michael Bova (right) The role of investment bonds Investment bonds aren't new, but their relevance is growing. They offer a unique blend of tax efficiency, simplicity and accessibility that can appeal to high net worth and high earning Australians looking to diversify their wealth accumulation and wealth transfer strategies outside of super. 'An investment bond is a long-term investment structure that pays tax at a maximum rate of 30 per cent. Generation Life leads the way in driving the tax effectiveness of the structure, with the anticipated effective annual effective tax paid rate of some investment options ranging from 10 per cent to 15 per cent, which is significantly lower than the highest marginal tax rate of an individual,' said Mr Araujo. 'Investment Bonds provide flexibility and investment choice. Once held for more than 10 years, withdrawals attract significant tax benefits – proceeds are fully tax paid, requiring no declaration to the ATO. And unlike super, there's no preservation age, so you can access funds at any time.' This flexibility makes them attractive not only for retirement planning, but also for those looking to set up intergenerational wealth, save for education, or simply reduce taxable income. Unlike property, which can be illiquid and carry overhead costs, or shares, which may require hands-on management, investment bonds offer a more streamlined alternative. Mr Bova explained: 'There's a level of simplicity. Once it's set up, it's relatively low maintenance – and for clients, that's a huge plus.' Another appeal is the ability to 'take advantage of the 10-year clock' through the 125 per cent rule, allowing investors to top up their bond annually without resetting the tax-free withdrawal period. 'Many people believe investment bonds are outdated,' said Mr Araujo. 'But when you understand how they work – especially in a changing tax environment – they start to make a lot of sense.' Mr Araujo also pointed out the growing interest in investment bonds not just from older Australians, but also among younger investors: 'We're seeing interest from younger clients– people in their 30s and 40s. That's been a noticeable shift in recent years.' Thinking beyond super As the financial landscape continues to shift, wealth structuring is no longer a 'set and forget' task. Instead, it's a dynamic process that benefits from forward planning, professional advice, and a willingness to consider newer or lesser-known strategies. 'There's no one-size-fits-all approach,' said Mr Bova. 'But the most important thing is that people are reviewing their portfolios, understanding the implications of the changes, and asking the right questions. That's the starting point.' Investment bonds won't be the right solution for everyone. But for those wanting to diversify, potentially reduce tax exposure, and maintain control over their funds, they may offer a smarter, more flexible pathway. Thousands of Australians could be affected by the proposed additional taxes on superannuation. Generation Life's investment bonds provide an alternative option to restructure your wealth that could be a tax-effective solution. To learn more, contact Generation Life today. Generation Life Limited (Generation Life) AFSL 225408 is the product issuer. The PDS and TMD at should be considered in deciding whether the product is appropriate for you or to continue to hold the product, other than in relation to Generation Life's product, information provided is factual information only and is not intended to imply any recommendation or opinion about superannuation products or superannuation investment.
Sydney Morning Herald
2 hours ago
- Sydney Morning Herald
Sydney rental crisis: Sydney rents for houses and unis hit record highs in June quarter
That was followed by the outer west and Blue Mountains, where house rents were up 6.7 per cent to $640 a week. The outer south-west recorded the strongest rental growth for units – up 7.4 per cent to $520 a week. That was followed by other far-flung and more affordable regions, including the Central Coast (up 5.8 per cent) and Blacktown (up 5.6 per cent). Powell said traditionally affordable pockets were recording stronger rates of rental growth. 'Tenants are shifting property types and locations. They're looking for those pockets of affordability, and they're difficult to find in Sydney when that affordability ceiling has been reached.' Centre for Independent Studies chief economist Dr Peter Tulip said the housing affordability issue was creating growing divisions within society. 'Those that have housing are doing well and those that do not are doing badly, and it's increasing inequality,' he said. 'At the bottom of the market, it's increasing rental stress that's seriously exacerbating poverty and homelessness.' Tulip said some Australians will be permanently locked out of home ownership. 'Home ownership has been called an aspiration in Australian culture and those dreams are being crushed. Many young people are understandably bitter and angry about this.' Loading He said the productivity of the economy was being increasingly harmed as dynamic workers left the city in favour of other capital cities or moved further out. 'Sydney is exporting its housing shortage to the rest of the country,' he said. 'People live with their parents, have two-hour commutes or live in overcrowded houses, which are all indicators of worsening living standards. Some of them show up in the statistics, many of them don't.' Tenants' Union of NSW chief executive Leo Patterson Ross said some tenants were having to compromise on essentials such as food and healthcare. 'We routinely hear people putting off things that aren't covered by Medicare like dentistry that they know they really need, but at the end of the day, rent can't wait,' he said. 'There's still a cumulative increase [in rents] year-on-year. It's not slowing down, it would be some relief for figures to go backwards. We're still seeing rent hikes that are above people's wages and that puts pressure on the household budget.' Renter Alex Colman, 40, has found a more affordable property in North Sydney. Credit: Wolter Peeters Renter Alex Colman, 40, said he was fortunate to have found a two-bedroom unit in North Sydney that he can comfortably afford. He previously lived in a one-bedroom unit, also in North Sydney, that was cheaper, but it had significant mould and substandard living conditions. 'The mould was terrible,' the director of IT company CICT Solutions said. 'We had to take everything out of the cupboards, disinfect and clean. 'When we first moved in, we had so many issues with the unit to begin with. The previous tenants had dogs, and it stunk of wet carpet and dog.' Colman and his girlfriend Jennifer Diaz previously lived in a one-bedroom unit. Credit: Wolter Peeters Before that, Colman lived in a two-bedroom unit in Zetland, where his rent was much higher. Little Real Estate national manager Stephen Erickson said once-affordable neighbourhoods are now becoming unaffordable. 'You get better value for money with cost of living … if you go three or four suburbs out,' he said.
Sky News AU
2 hours ago
- Sky News AU
Smart Energy Council CEO John Grimes' controversial China climate praise, attack on 'Team Australia' panned
A controversial speech by Smart Energy Council CEO John Grimes, in which he praised China's approach to climate change and claimed Australians "tear each other apart", has been met with staunch criticism. Catch up with all of the day's breaking news and live interviews from politicians and experts with a Streaming Subscription.
