Tax Agent
Tax agents prepare and lodge tax returns for people and businesses, and they register with the Tax Practitioners Board so they can deal with the ATO on a client's behalf.
- Median salary*
- $93,600
4.5%vs last year, before tax
- People employed*
- 18,000
0.6%vs last year
- Projected growth*
- +4.6%
to 2035
- AI exposure*
- Moderate
- automation risk
- Average hours*
- 41/wk
+1h vs all jobs
- Shortage status*
- Not in shortage
national
Tax agents prepare and lodge returns, advise on deductions, structures and tax planning, and speak for a client in front of the ATO. Most work in small practices or larger accounting firms, and the year has a clear shape, building towards the lodgement deadlines that fall in the months after 30 June. It differs from bookkeeping and BAS work because a tax agent's registration is what allows them to prepare income tax returns for a fee and to represent a client with the Commissioner.
How much do tax agents earn?
The median full-time salary for a tax agent is $93,600 per annum, before tax, up $19,800 since 2018.
Pay depends heavily on whether you work for a firm or own the practice, since a registered agent with their own client base sets their fees while an employee's pay is set by the firm and the level of the role. The client mix matters too, because complex business and advisory work bills at higher rates than straightforward individual returns. The work is also uneven across the year, so an annual figure smooths out a calendar that is far busier in some months than others.
What does a tax agent do day to day?
The list below is what fills most weeks; the exact mix shifts with seniority and whatever stage the current work is at.
- Reconciling a client's income and deductions against ATO prefill data to build a return that would hold up under review
- Meeting sole traders and families through the lodgement season, when the appointment book fills for months ahead
- Lodging returns under your own registration, which makes you answerable to the Tax Practitioners Board for what goes in
- Handling an ATO review or audit for a client, including the calls, correspondence and explanations that come with it
- Rereading legislation and rulings when a rule changes so the advice you gave last year still holds
What skills do tax agents need?
Employers look for tax compliance and planning, regulatory compliance, financial reporting, backed by Xero Tax fluency and strong client relationships and advisory.
Specialist skills
- Tax compliance and planning
- Regulatory compliance
- Financial reporting
Software and tools
- Xero Tax
- MYOB
- ATO portals
- Excel
General skills
- Client relationships and advisory
- Attention to detail
- Time and deadline management
Is the job growing?
About 18,000 people work as tax agents in Australia, and employment is projected to grow 4.6% over the decade to 2035. That's modest growth: demand is steady rather than booming.
How do you become a tax agent?
Here's the path most tax agents take, step by step.
- 1Get a qualification in accounting or tax
Most people entering the field hold a bachelor degree in accounting or a related area, which covers the commercial and company law subjects registration expects. A diploma in accounting can also lead towards registration, though it usually means more supervised experience before you meet the requirements.
- 2Cover Australian tax law and commercial law
If your degree didn't include board-approved subjects in Australian tax law and commercial law, you complete those courses separately through a university or another Tax Practitioners Board approved provider. They are the subjects the Board checks first when it assesses an application.
- 3Work under a registered agent
Registration requires relevant experience, usually at least 12 months full time equivalent under the supervision of a registered tax agent within the past five years. The work is paid, and it is where most of the practical judgement about clients, claims and record keeping is learned.
- 4Apply to the Tax Practitioners Board
You apply as an individual, provide evidence of your qualifications and experience, declare that you are a fit and proper person and hold professional indemnity insurance. Registration is renewed every three years, and continuing professional education each year keeps it current.
- 5Choose a direction
Many agents stay in public practice and build a client base, either inside a firm or in a practice of their own, while others move into larger firms, corporate tax teams or audit work. The registration is personal, so it stays with you when you change employers.
Ready to apply as a tax agent?
Whether you're working toward becoming a tax agent or already are one and want a hand with the next step (sharpening your resume for ATS screening, tightening your cover letter, or knowing what you'll actually be asked at interview), here are examples grounded in this specific role, not generic templates.
What jobs can a tax agent move to?
Moving into Tax Manager typically comes with the biggest pay rise, worth $28,600 a year more on average.
| Move to | Typical pay change | Overlap | Retraining |
|---|---|---|---|
| Tax Manager A tax agent moves into managing a tax practice, deepening the same compliance specialism with extra study to meet registration requirements. | +$28,600 | 50% | short course |
| External Auditor External audit builds on the compliance and reporting skills a tax agent already has, though a substantial course in audit practice is needed.Known move | +$15,800 | 37% | reskill |
| Solicitor Tax law advice for clients leads some tax agents into legal practice, requiring a law degree and admission as a solicitor.Known move | +$14,000 | 15% | requalify |
| Accountant Tax agents who widen their practice into general accounting bring client and compliance knowledge, needing only a short bridging course.Known move | +$10,600 | 46% | short course |
| Tax Auditor Tax audit work uses the same tax law knowledge to review returns, with a short course covering the shift to investigation. | +$10,400 | 50% | short course |
Moves are chosen from Jobs and Skills Australia's Data on Occupation Mobility, which follows income tax records between 2011-12 and 2020-21, together with entry requirements and skill overlap. A known move is one people were seen making in that data. Pay change compares median full-time pay for the two roles.
Who works as a tax agent?
The typical tax agent is 42 years old; 51% are women, 82% work full-time, and full-timers average 41 hours a week.
- 42
- Median age
- 51%
- Female share
- 82%
- Full-time
- +1h
- vs all-jobs avg
What's it like being a tax agent?
The job follows a calendar. From July the practice fills with appointments and the pressure builds towards the lodgement deadlines, then the pace eases into planning, structures and advisory work in the quieter months. It suits people who like knowing the rules properly and explaining them, and who are comfortable being the person a client leans on when the ATO starts asking questions.
What people like
- The rules are written down. Tax law is documented and updated on a schedule, so a careful reader can reach a defensible answer and explain how they got there.
- Clients come back each year. You build a picture of a family or a business over a decade, which makes the advice sharper and the working relationships steadier than one-off jobs allow.
- Advisory work in the quiet months. Outside lodgement season the work shifts towards timing, structures and planning, which many agents find more interesting than the returns themselves.
- You can run your own practice. Registration belongs to the individual, so an agent with a client base can open their own practice without needing a firm behind them.
What people find hard
- Lodgement season takes over the year. Between July and October the hours stretch, leave is hard to take, and a backlog tends to follow you home.
- The accountability is personal. You lodge under your own registration, so a careless client or an unsupported claim lands on you rather than on them.
- The rules keep moving. Rates, thresholds and rulings change regularly, so reading and continuing education are part of the job rather than optional extras.
- Conversations about money owed. Telling a client they owe the ATO instead of receiving a refund is a routine part of the work, and not a comfortable one.
Based on our synthesis of professional-body surveys and public accounts of the role, not first-person verified reviews.
Which industries employ tax agents?
Professional, Scientific & Technical Services employs the largest share of tax agents, followed by Financial & Insurance Services.
Top employing industries
- 1Professional, Scientific & Technical Services
- 2Financial & Insurance Services
Ranked by employment share; the source doesn't publish an exact percentage per industry.
| Bachelor degree | 52% | |
|---|---|---|
| Postgraduate | 26% | |
| Diploma / Advanced Diploma | 13% | |
| Other | 9% |
Will AI replace tax agents?
Return preparation is already heavily assisted by software, with prefill data, document scanning and automated calculations taking over the mechanical parts of simple returns. What keeps the role only partly exposed is the advice and the accountability: working out how a rule applies to a client's situation, negotiating with the ATO and lodging under your own registration are things clients pay a person to do.
Share of typical working time by exposure level
- Preparing and checking client returnsSoftware pulls in prefill data and checks the arithmetic, so the effort goes into the source records and the claims that need a reason behind them.30%high
- Researching the treatment of a transactionSearch tools surface the relevant rulings quickly, but deciding how they apply to one client's circumstances is still the agent's call.25%moderate
- Meeting clients and gathering informationSitting with a sole trader to piece together what happened during the year, and asking the question that uncovers a missed deduction, is a conversation.25%low
- Lodging returns and managing ATO correspondencePortal lodgement, status tracking and reminder letters are largely automated, which cuts the administration but not the responsibility for what was lodged.20%high
Common questions about becoming a tax agent
Straight answers to the questions people ask most.
How much do tax agents earn?
Tax agents earn a median of $93,600 per annum, before tax. Pay rises with experience and with the complexity of the clients you handle, and agents who own their practice earn from the fees they set rather than from a salary.
How do you become a tax agent?
You need a qualification in accounting or tax, board-approved study in Australian tax law and commercial law, and usually at least 12 months of supervised experience, then registration with the Tax Practitioners Board. Because the registration is personal, it stays with you if you change firms.
Are tax agents in demand?
Tax agents are currently not in shortage, and employment is projected to grow 4.6% over the decade to 2035. Registration is required before you can charge for this work, so employers look for people who already hold it or are close to meeting the requirements.
Will AI replace tax agents?
Software already handles a lot of the mechanical work: prefill data, document scanning and automated calculations have cut the effort in simple individual returns. The judgement stays with the agent, deciding how a rule applies to a client's circumstances and defending that position to the ATO, and clients still pay for someone to explain the outcome and carry the responsibility for lodging.
What can a tax agent move into?
Tax management is a common next step, taking on a team and a larger portfolio, and median pay for that role is $28,600 more. Others widen into general accounting, which uses the same reporting and compliance skills, or move into tax auditing, reviewing returns rather than preparing them. Running your own practice is the other well-worn path, and it is often where earnings grow, since you set the fees instead of drawing a salary.
What is the difference between a tax agent and a BAS agent?
A BAS agent can lodge activity statements and handle basic GST and payroll obligations, while a tax agent's registration covers income tax returns, tax advice and representing clients with the ATO. BAS agents who want to move across usually need further study in tax law before they can register.
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