Tax Agents vs Accountants: Who Handles Deductions Better?

I’ve been an accountant here in Australia for over 35 years, and if there’s one question I’ve heard again and again, it’s this:

“Zoe, who’s better for my deductions  a tax agent or an accountant?”

It usually comes from business owners who are already stressed, holding a shoebox of receipts or sending me emails at midnight. And I don’t blame them. Deductions and claims can feel like a jungle  too many rules, too much jargon, and that constant fear that the ATO might say, “Sorry, you did it wrong.”

Let me share what I’ve learned after working with hundreds of different people  café owners, tradies, shopkeepers, hairdressers  you name it.

The Difference in Plain English

Here’s how I usually explain it, over coffee:

• A tax agent is like a laser beam. Their job is focused  preparing and lodging your tax return, making sure your deductions are right, and dealing with the ATO. They know the deduction rules like the back of their hand.
• An accountant is more like a wide-angle lens. Yes, some of us are also registered tax agents, but we don’t just look at tax. We handle payroll, BAS, compliance, reporting, and give advice that helps you keep your whole business steady.

Both are valuable  but which one is better for deductions depends on your situation.

When a Tax Agent Makes Sense

I remember working with Jenny, a hairdresser renting a chair in someone else’s salon. At tax time, she’d sit at her kitchen table surrounded by little receipts  scissors, hair products, uniforms, phone bills.

She didn’t need cash flow forecasts or payroll systems. She just wanted someone to check her claims and make sure she wasn’t missing out. A tax agent was perfect for her. Quick, straightforward, and focused on deductions.

For freelancers, sole traders, and people with simple finances, I often say: a tax agent is all you need.

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When an Accountant Adds More Value

Then there’s George, a builder I helped years ago. He had five staff, a pile of invoices, and payroll records that didn’t match what was lodged for super. At first, he thought a tax agent would be enough. But year after year, things slipped through the cracks.

That’s when he came to me. And let me tell you  payroll was a mess.

Payroll isn’t just “paying people.” It’s awards, leave balances, super payments, PAYG withholding, and Single Touch Payroll (STP). I’ve seen so many businesses think they’re fine, only to find out later that super wasn’t paid correctly or tax wasn’t withheld properly. And those mistakes? They come back at year-end and bite hard.

For George, what he needed wasn’t just someone to lodge deductions. He needed an accountant who could look at the whole picture  payroll, compliance, BAS, reporting, and yes, deductions too.

That’s the thing: accountants catch problems earlier, because we’re looking at everything, not just tax at year-end.

The Payroll Headaches I’ve Seen

Over 35 years, I’ve seen patterns repeat:

• Super paid late. Business owners think it’s fine if it’s “eventually paid.” But the ATO says no  if it’s late, it’s not deductible. That stings.
• Wrong award rates. I once had a café paying flat wages that ignored weekend penalty rates. Fixing that mess with backpay nearly sank them.
• STP issues. Some owners hit “submit” and think it’s done. But when it doesn’t reconcile with the BAS, you’ve got a problem.

A tax agent might notice this once a year when they look at your return. But an accountant, especially one who manages your payroll regularly, will see it as it happens.

So, Who Handles Deductions Better?

Here’s my honest answer:

• If you’re an individual or sole trader with straightforward income and expenses, a tax agent is brilliant. They’re sharp on deductions and know all the little rules that help you save.
• If you’re a business owner with staff, payroll, BAS, and compliance to worry about, then an accountant (who is also a registered tax agent) is often the better choice. You don’t just get deductions handled  you get the whole financial health of your business looked after.

The Human Side of It

I’ve had people walk into my office red-faced, apologising for messy records. One tradie once dumped a garbage bag of receipts on my desk and said, “Sorry Zoe, I’m hopeless at this.”

And you know what? That’s okay. I’d rather they bring me the bag than try to do it alone and miss out on deductions or get something wrong.

Because at the end of the day, tax isn’t about numbers  it’s about people. People trying to keep their heads above water, pay their staff on time, and stay on the good side of the ATO. Whether you use a tax agent or an accountant, what matters most is that you find someone you can trust, someone who listens, and someone who speaks to you in plain language.

Final Thoughts

So, who handles deductions better? It depends:

• Tax agents shine when things are simple.
• Accountants shine when things are more complex.

But the real answer is this: the best person to handle your deductions is the one who understands you.

After 35 years, that’s the biggest lesson I’ve learned. Behind every tax return, every payroll, and every deduction, there’s a human story. And the right professional doesn’t just crunch numbers  they give you peace of mind.