Work out how much a deductible accounting or tax agent fee really costs once the tax deduction is taken into account.
Fees for managing your tax affairs, and accounting fees incurred in running a business, are generally deductible. The deduction reduces taxable income, so the real cost of the fee is lower than the invoice. This calculator shows the size of that effect.
Enter the fee you paid. If your business is registered for GST, enter the amount excluding the GST you claim back as a credit. Then enter the tax rate the deduction saves: a company that is a base rate entity pays 25%, other companies 30%; for a sole trader it is your marginal rate (check the current individual rates on the ATO website, and remember the Medicare levy of 2% generally also applies).
The calculation is: tax saved = fee × tax rate, and after-tax cost = fee − tax saved.
Worked example (illustrative): a base rate entity company pays $3,300 including GST for its annual accounts. It claims $300 back as a GST credit, so the deductible amount is $3,000. At 25%, the deduction saves $750, and the after-tax cost is $2,250.
Limits: the saving only arises if the business has taxable income to offset in that year; with a tax loss the benefit is deferred. The deduction is generally claimed in the year the fee is incurred. Some advice, such as setting up a new structure, may be capital rather than deductible. See are accountant fees tax deductible and confirm with your tax agent.
Fees, Cost Drivers and 2026 Rules
When accounting, bookkeeping and tax agent fees are deductible for Australian businesses and individuals, which costs may be capital, how GST interacts, and the real after-tax cost.
