If you are like most people, when you hear of a tax agent, you probably think of an accounting professional who can assist you with lodging your tax return.
This is true, to an extent.
While there are many tax agents whose sole skill-sets are taxation and tax law, there are also those whose knowledge and expertise go far beyond taxes.
Yes, they can help you with your tax obligations, some of which include:
- Preparing your annual tax return
- Advising on how to minimise your tax obligations
- Providing advice on compliance with the ATO’s requirements.
But did you know there are tax agents for small businesses?
If you are running a small business, then you can partner with a tax agent who can not only competently perform all of the above but advise you on how to help your business survive and thrive.
Tax agents assist entities such as small businesses with essential registrations like ABN (Australian Business Number), tax file number (TFN), and GST registration, as well as ongoing compliance requirements.
Tax agents also handle tedious paperwork and calculations, saving time for clients.
Tax agent services are regulated by the Tax Agent Services Act 2009, which outlines the registration requirements for tax agents and defines what constitutes a tax agent service in section 90-5 of the Act.
Let’s take a look at what a good tax agent can do for your small business and why they are so important to sustained business growth.
Consistent communication, clear compliance, and reliable accounting support.
What is a tax agent?
To put it simply, a tax agent is a person who provides tax agent services.
Tax agents provide professional assistance during tax season and are qualified to advise on taxation law as well as represent taxpayers before the Australian Taxation Office (ATO).
Tax agents must be registered under the Tax Agent Services Act 2009, which is the key act governing the registration and conduct of tax agents in Australia.
The tax agent services we are discussing, also known as Public Accountants, specialise in tax accounting.
Entities must reasonably expect to rely on tax agent services to satisfy their liabilities or obligations, or to claim entitlements under taxation law.
They can perform all the duties of an accountant and have the authority to represent small businesses and organisations when handling tax authorities like the ATO.
These types of tax agents are specialists with further qualifications, qualifying them to deal with business tax compliance and law.
Do you have a registered tax agent?
It’s essential to ensure your tax agent is above board and just not some cowboy who punches numbers.
Proper tax agents are registered professionals with the Tax Practitioners Board (TPB).
Tax agents must register with the TPB and complete a formal application process to obtain registration, ensuring they meet all compliance and legal requirements.
As a result, their licence allows them to provide businesses with professional tax and advisory services.
Tax agents can assist businesses in all tax-related matters, including any issues related to tax returns, payments, and other financial advice.
The best tax agents will learn your business inside and out and be able to provide business development services, perform business analysis, asset protection strategies and business structure services, among other services benefitting the operation of your business.
It is important that your tax agent maintains up-to-date registration to legally provide tax agent services and represent you before tax authorities.
Your best quality tax agent online services guides go beyond just “numbers”.
They identify areas where you can either save money or make more money for your business. Ideally, a top tax agent should possess the following skills:
- Good with numbers
- Technology literacy
- Relationship building
- Business advisory
- Project management
- Business experience (outside accounting)
What are Tax Agent Services?
An ATO tax agent services guide helps you with a comprehensive range of tax agent services, including access to online services for agents.
These digital tools enable tax professionals to lodge business activity statements (BAS) and income tax returns online, streamlining compliance and making the process more efficient for clients.
The accuracy and thoroughness of the information provided by tax agents is crucial in ensuring all services are completed correctly and in line with ATO requirements.
Preparing Tax Returns, Notices, and Other Documents
By preparing income tax returns for individuals and businesses, quality tax agents can also advise how to avoid paying too much tax.
Tax agents can apply for private binding rulings or other tax-related services on behalf of clients, streamlining the process of submitting official requests to the tax authorities.
Tax agents can access account information and update bank details for various tax roles online, ensuring all relevant details are considered.
The tax file number (TFN) is essential for lodging income tax returns and for identification within the Australian taxation system.
Tax agents help maximise your refund by identifying all eligible deductions and ensuring you claim your full entitlement.
Tax agents identify overlooked deductions, which can lead to larger refunds or lower tax bills.
They also develop strategies to legally minimise tax liabilities through income splitting, investment timing, and optimised deductions.
Preparing Depreciation Schedules
This tedious task that requires a lot of time and effort.
The process starts with identifying the assets that are going to be depreciated.
The next step is to determine the useful life of each asset and the salvage value at the end of its useful life.
The last step is to calculate the annual depreciation expense for each asset.
Lodging Objections on Behalf of Taxpayers
Good tax agents are experts in the field of taxation and they know how to lodge objections on behalf of taxpayers.
They can also help with the process of lodging objections.
Tax agents can submit applications for objections and request remission of penalties, such as failure to lodge penalties, through online services.
Tax agents can also secure extended filing deadlines for clients, reducing late-filing penalties.
Helping Businesses Determine Withholding Obligations
An employer is required to withhold taxes from their employees’ wages and send them to the ATO.
A quality tax agent helps determine the amount but sends it to the ATO on your behalf.
Tax agent services also ensure that all employee details are accurately reported and updated, which is essential for meeting withholding obligations.
Advice on taxation law
This helps you realise your taxation obligations and offers peace of mind that your business is above board.
Registered tax agents stay updated on complex and frequently changing tax laws, including key legislation such as the Income Tax Assessment Act 1997 and the Tax Agent Services Act 2009, ensuring your business complies with all relevant acts and statutory requirements.
Business Activity Statement (BAS) assistance
Automate and lodge your BAS and GST returns every quarter to ensure full compliance with GST reporting requirements and that everything is in order come EOFY.
Tax agents also handle Business Activity Statements (BAS), payroll, capital gains, and provide strategic advice for future tax efficiency.
Providing general taxation advice
This can help save money on your taxes tailored to your personal circumstances.
Small business advice
A good agent can identify areas where your business can save money. For example, cutting down on overheads and paying less tax.
Installing computer accounting software
Your tax agent can help install and implement SaaS such as Xero, Quickbooks and Reckon, among others.
Implementing automation technology
Accounting is becoming ever-more crucial for automation. Your tax agent can help set up technology to automate processes.
General training
They can also assist in training your team in using software and utilising automation with books, invoices, etc.
Providing a payroll service
Interpreting and applying taxation law and reporting employee payroll information through single touch payroll (STP) enabled software.
Payroll compliance review
Undertaking an assessment and opinion on whether the client is compliant with their taxation obligations.
Personalised tax advice
In relation to PAYG withholding liability, fringe benefits tax laws, Superannuation Guarantee obligations, and termination and redundancy payments.
How do Small Businesses Work with Tax Agents?
We already know that tax agents are professionals who specialise in tax law and lodging tax returns for the ATO.
Furthermore, we established they can also help small businesses with their taxes. But how exactly?
Besides helping you with your taxes, they also offer other services such as bookkeeping, payroll, and accounting, along with business advice.
As of 2026, tax agents’ roles extend to strategic financial planning and representation before tax authorities.
Tax agents can be an excellent resource for small businesses because they have the knowledge and expertise to help you navigate the complex world of taxes.
You can expect tax agent services to include direct communication with the Australian Taxation Office (ATO) on your behalf, ensuring your liabilities, obligations, and entitlements under taxation law are managed in compliance with legal and regulatory requirements.
They can also provide valuable advice on saving money on your taxes.
By finding a quality small business tax agent that you can work with for years on end, they will get to know your business inside and out.
Along the way, they financially streamline your business and taxes, helping you improve your bottom line and profits.
As a result, the right tax agent becomes more like a business partner than a necessary evil to handle your tax obligations!
With the right small business tax agent, they can become an extension of your office, someone you can rely on and trust to have your best interests at heart.
In this new world of remote work, a relationship can be maintained anywhere.
However, we advise first meeting face to face before committing to your new tax agent relationship.
It’s important to get a gauge on them to ensure they are the right fit for you.
While most of the communication and work can be done online, your tax agent should also be on hand for meeting onsite when required and attending in-person meetings.
For further information on working with tax agents, refer to the official ATO guidelines or the Tax Practitioners Board website.
Tax agent cost
A tax agent’s fees vary widely depending on the service you are after and the consultant’s specific qualifications.
Before selecting your tax agent, ask for precise information about their price schedule for different services.
Also, meet with a few first and compare prices before deciding. H&R Block, for example, offers a tax refund advance service that allows individuals to receive their money within minutes instead of weeks.
More complex taxes and advisory services throughout will often charge by the hour.
Tax agents also assist clients in lodging the taxable payments annual report to ensure compliance with ATO requirements.
Exploring your options and considering what you want and what is a worthwhile expense is essential.
From a financial perspective, while budgeting is important when hiring a tax specialist, spending that little bit extra might save you more money in the long run.
Ready to Make Tax Time Easier with Pherrus?
A great tax agent does more than just lodge returns with the ATO. They help lighten your workload, streamline your day‑to‑day operations, and give you confidence that your business is on the right track.
Pherrus is a small business tax agent specialist, combining practical tax expertise, real business experience, and a friendly, down‑to‑earth approach.
We focus on helping small businesses stay compliant, uncover opportunities, and make better financial decisions all year round, not just at tax time.
If you’re looking for a supportive, proactive tax partner who understands small business, get in touch with Pherrus today and see how we can help your business grow with less stress and more clarity.
FAQs
How Do Online Services Help Tax Professionals?
Online services for agents streamline tax agent services by letting a registered tax agent manage ATO reporting and lodgements through a secure online system.
Using online services, tax agents can often lodge online for clients, review account details, and track key items like tax returns, activity statements (BAS), and related notices (including a notice of assessment where relevant).
In 2026, many tax agents also provide online tax preparation services using encrypted document transfers.
Where applicable, agents can also assist with items such as taxable payments, annual report obligations and fuel tax credits claims.
What Documents and Details Should I Give My Tax Agent to Lodge My Tax Return or Activity Statements?
To complete tax returns and activity statements, your agent will typically request key details and supporting documents, such as income records, expense receipts, invoices, bank statements, payroll summaries, and accounting software exports/reports.
You may also need identifiers like your tax file number (TFN) (or tax file number TFN), ABN, and GST information if registered for GST.
Why Should I Use a Registered Tax Agent?
Choosing someone with proper registration helps ensure your business meets ATO obligations, receives compliant advice, and has support if issues arise (for example, responding to an
ATO query, handling a review, or preparing objections where appropriate).
For further information, you can refer to the Tax Practitioners Board (TPB) requirements and ATO guidance.
