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MJE Business Services

Is Your Accountant's Fee Tax Deductible? Yes, and Here's How

Last reviewed: 2026-06-15Individual Tax

Is Your Accountant's Fee Tax Deductible? Yes, and Here's How

Short answer: yes. The fee you pay a registered tax agent to prepare and lodge your return is tax-deductible. The ATO calls this the cost of managing your tax affairs, you claim it at item D10, and it is one of the more straightforward deductions to get. The one catch for 2025-26: ATO interest charges are no longer deductible. It is a question we hear often from clients across Mortdale and Sydney's south, so here is exactly what is included, what is not, and how to put it on your return.

The "cost of managing tax affairs" deduction

The ATO lets you deduct expenses you incur in managing your own tax affairs. For individuals, you claim it at item D10 on your tax return. In simple terms, the cost of dealing with your tax obligations is itself a tax deduction.

The key condition: the advice or service must come from a recognised tax adviser - that is, a tax agent or BAS agent registered with the Tax Practitioners Board. Fees paid to someone who is not registered cannot be claimed. (MJE Business Services is a registered tax agent, Tax Agent No. 26313222.)

What is included

According to the ATO, deductible costs of managing your tax affairs can include:

  • Preparing and lodging your tax return and activity statements.
  • Fees paid to a recognised tax adviser for tax advice.
  • Tax return software you buy to complete and lodge your own return.
  • Travel to get tax advice from a recognised tax adviser.
  • Litigation costs you incur in managing your tax affairs (for example, certain disputes with the ATO).

So it is not just the headline preparation fee - the related, genuine costs of meeting your tax obligations can count too.

If you run a business, the same principle flows through your business accounts. Our business advisory and tax planning services are about getting these obligations right, and the fees for that work are part of managing your tax affairs. For individuals, our individual tax returns service includes this claim as a matter of course. Wondering what the fee itself runs to? See our companion guide on how much a tax agent costs.

What is NOT included

A few important exclusions to keep you out of trouble:

  • ATO interest charges incurred on or after 1 July 2025 - the General Interest Charge (GIC) and Shortfall Interest Charge (SIC) are no longer deductible. This applies even where the underlying debt relates to an earlier income year. GIC and SIC incurred before 1 July 2025 stay deductible for 2024-25 and earlier years. This is a recent change, so do not assume interest works the way it used to.
  • Fees to someone who is not a registered tax agent - if your helper is not registered with the Tax Practitioners Board, you cannot claim their fee.
  • The tax debt itself - paying the ATO what you owe is never a deduction; only the cost of managing your affairs is.

How to claim it

For most individuals it is simple:

  1. Claim it in the year you paid it. If you paid your agent in the 2025-26 year for last year's return, you claim it on your 2025-26 return.
  2. Put it at item D10, "Cost of managing tax affairs," when you lodge. If we prepare your return, we include it for you automatically.
  3. Keep the records. You must be able to show how you worked out each amount, so hold onto the agent's invoice, software receipts, and any travel records.

Keep your records

The ATO expects you to show how you calculated each expense and to keep evidence to support what you claim. Your agent's tax invoice is the main one. If you are claiming travel to see your adviser or software you bought, keep those receipts too. A quick photo into the ATO's myDeductions tool through the year means everything is ready at tax time.

FAQ

Do I have to itemise the agent fee, or does the ATO know? You claim it yourself at item D10. If we prepare your return, we include it for you - you do not need to do anything extra.

Can I claim interest the ATO charged me? Not for interest incurred on or after 1 July 2025. The General Interest Charge and Shortfall Interest Charge are no longer deductible from that date, even though your agent's fee still is.

Is the fee deductible if I used free online software instead of an agent? The cost of tax return software you buy to lodge your own return can be claimed. Free software has no cost to claim, and fees to a non-registered helper are not deductible.

We will make sure it is claimed

Claiming your agent fee is easy to miss if you lodge yourself - and easy for us to include if we prepare your return. If you are in Mortdale, Hurstville, Beverly Hills or nearby, get in touch or call (02) 9580 1167 and we will look after your return end to end, including the deductions you are entitled to.

Written by the team at MJE Business Services, a registered tax agent (No. 26313222) serving the St George area since 2000.

This is general information, not personal advice. Tax rules and dates change - please check your situation with us or at ato.gov.au.

Sources (ATO)

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