Tax agent, accountant or financial adviser: who to see and when
Three different roles, three different times to call
Many people use a single word — “accountant” or “tax person” — for everyone in the finance and tax field. But in Australia there is a clear distinction between a tax agent, an accountant, and a financial adviser. Each has different registration, scope of work, and regulation.
Tax agent — tax returns and compliance
A tax agent is registered with the Tax Practitioners Board (TPB) to provide tax return and tax advice services to clients. They can:
- Prepare and lodge your tax return
- Advise on deductions and declaring income
- Handle correspondence with the ATO on your behalf
- Represent you if the ATO conducts a review
When you need one: Lodging your tax return each year, especially if you have income from several sources, an investment property, or a complex tax situation. Also when you receive correspondence from the ATO that you do not understand.
An accountant is usually also a tax agent — but not every tax agent is a full accountant.
Accountant — business finance and accounting
An accountant has a broader scope — including preparing financial statements, advising on business structure, managing the books, and tax planning for a business. Those who hold a CPA (Certified Practising Accountant) or CA (Chartered Accountant) qualification have completed rigorous training and examinations.
When you need one: When you have a business, when you need advice on business structure, when preparing to buy or sell a business, or when you need financial statements to borrow funds.
Financial adviser — personal financial planning
A financial adviser holds an Australian Financial Services Licence (AFSL) or works under an organisation’s AFSL, and is permitted to give advice on investments, insurance, and personal financial planning (including super).
They can advise on:
- Personal investment strategy
- Super structure and retirement planning
- Life insurance and personal insurance
- Long-term financial goals
When you need one: When you have significant assets to invest, when planning for retirement, when you are unsure how to optimise your super, or when you need to review your personal insurance.
Important note: A financial adviser must act in your best interests (best interests duty). Check that your adviser is validly registered on the MoneySmart Financial Adviser Register (register.moneysmart.gov.au).
Quick summary
| Issue | Who to see |
|---|---|
| Annual personal tax return | Tax agent |
| Receiving ATO correspondence | Tax agent |
| Business bookkeeping | Accountant |
| Business structure advice | Accountant |
| Long-term investment plan | Financial adviser |
| Super strategy | Financial adviser |
| Buying/selling an investment property | Both an accountant (tax) and a financial adviser (strategy) |
Costs and estimates
Costs vary with the complexity of the situation and the professional’s experience. For a simple tax return the fee is usually low; for complex investment advice it may be an ongoing fee or a percentage of assets. Always ask about the fee structure before you begin.
Community legal centres and some not-for-profit organisations also provide basic financial advice free or at low cost for people on low incomes.