ATO

Because tax needs differ depending on whether you are a standard PAYG employee, a property/share investor, a sole trader, or a small business owner, there is no "one size fits all" tax software in Australia.

To help you find the right fit, the top tax software and platforms that Australians actually use are broken down below by category.

1. For Standard Individual Taxpayers (PAYG Employees)

If your primary income comes from an employer and you have straightforward deductions (work-related expenses, donations, etc.), you have a few highly popular options.

• myTax (via myGov)
  • What it is: The official, completely free online lodging tool provided by the Australian Taxation Office (ATO).
  • Why people use it: It is by far the most popular option in Australia because it’s free. From late July onwards, the ATO automatically "pre-fills" most of your data (salary, bank interest, health insurance, and even some share dividends), meaning you often only need to manually enter your work-related deductions.
  • Pro-tip: Pair this with the ATO App (myDeductions) throughout the financial year. You can snap photos of your receipts and log your work-related car trips on the go, then upload them directly into myTax when you're ready to lodge.
• Etax (etax.com.au)
  • What it is: Australia's most popular online tax agent service.
  • Why people use it: If you want the speed of an online form but don't quite trust yourself to do it alone, Etax bridges the gap. You fill in your details online, but a qualified, real-life accountant reviews your return before it is submitted to the ATO to check for errors or missed deductions.
  • Cost: Starts at around $70–$130 (highly complex returns cost more), and the fee is fully tax-deductible on your next year's return.
• H&R Block Online
  • What it is: The digital arm of one of Australia’s oldest and largest physical tax brands.
  • Why people use it: Their "do-it-yourself" online platform is highly intuitive and uses a tiered pricing system (Starter, Standard, Deluxe, Premier) depending on how complex your investments or deductions are. Like Etax, you can easily access professional support if you get stuck.
• One Click Life
  • What it is: A rapidly growing "life admin" and tax lodging portal.
  • Why people use it: It is designed for maximum speed. Over 250,000 Aussies use it because it links directly to your ATO records and allows you to lodge a simple return in just a few clicks from your phone.

2. For Investors (Shares, ETFs, & Crypto)

If you trade shares, receive ETF distributions, or buy cryptocurrency, standard tax tools can struggle with the complex Capital Gains Tax (CGT) calculations. Most Aussies use specialized software to generate reports that can then be plugged straight into myTax or handed to an accountant.

• Sharesight (for Shares & ETFs)
  • What it is: The gold-standard portfolio tracker for Australian share investors.
  • Why people use it: Calculating tax on ETFs is notoriously difficult due to AMIT (Attribution Managed Investment Trust) tax components. Sharesight automatically tracks your dividend reinvestment plans (DRPs), handles trust distribution components, and generates an ATO-ready Taxable Income and Capital Gains Report.
  • Cost: Free for up to 10 holdings; paid plans start around $9/month, or you can buy a one-off "Tax Pack".
• Summ (formerly Crypto Tax Calculator) (for Cryptocurrency)
  • What it is: The market-leading crypto tax software tailored for Australian ATO regulations.
  • Why people use it: It integrates seamlessly with major Australian exchanges (like Swyftx, CoinSpot, and BTC Markets) as well as global wallets and DeFi platforms. It categorizes your transactions, handles complex DeFi events, applies the ATO's 12-month 50% CGT discount where applicable, and exports a clean report for your tax return.

3. For Sole Traders, Freelancers, & Contractors

If you are self-employed with an ABN, standard accounting software can feel like overkill, but doing it manually is a headache.

• Hnry
  • What it is: An all-in-one financial and tax service designed purely for Australian sole traders.
  • Why people use it: Hnry acts as your business bank account. When a client pays your invoice into your Hnry account, Hnry automatically calculates and deducts your exact Income Tax, GST, and Superannuation contributions before forwarding the rest to your personal account. They also lodge your Business Activity Statements (BAS) and EOFY tax returns as part of the service.
  • Cost: 1% + GST of your self-employed income (capped at $1,500 + GST per year).
• Rounded
  • What it is: A beautifully designed invoicing and bookkeeping app built specifically for Australian sole traders.
  • Why people use it: If you don't want a service that automatically takes a percentage of your income (like Hnry), Rounded is the best alternative. It lets you easily track expenses, send professional invoices, and automatically calculates your GST and BAS requirements so you can lodge them in minutes.
  • Cost: Flat monthly subscription starting around $20–$30/month.

4. For Small Businesses (Pty Ltd Companies & Co-founders)

For businesses with employees, physical stock, or complex structures requiring Single Touch Payroll (STP) compliance.

• Xero
  • What it is: The undisputed king of cloud accounting in Australia.
  • Why people use it: Almost every accountant in Australia prefers Xero. It is incredibly robust, integrates with thousands of third-party business apps, makes bank reconciliation effortless, and makes lodging your quarterly BAS directly to the ATO incredibly simple.
• MYOB
  • What it is: The historic local powerhouse that remains highly popular for Australian businesses.
  • Why people use it: It is a strong, slightly more budget-friendly competitor to Xero (especially with their "Lite" and "Solo" plans). It handles STP and payroll smoothly and is highly trusted by local bookkeepers.

Summary Recommendation

• Got a simple PAYG job? Use myTax (free) or Etax (if you want an accountant's stamp of approval).
• Own shares or crypto? Use Sharesight and Summ to do your calculations.
• A sole trader/freelancer? Go with Hnry to completely automate your taxes, or Rounded if you prefer manual control.
• Running a growing company? Stick to Xero.

(Remember: Any fees you pay for tax preparation software or tax agents are generally tax-deductible in the following financial year!)

If you’re an individual in Australia, the most-used and most practical options are myTax, Etax, and H&R Block Online; for sole traders or people who want year-round tracking, Hnry, Solo by MYOB, and TaxTank are the names that come up most often in Australia-focused roundups.

Here’s the simplest way to choose:

For most employees with a fairly standard return, myTax is the safest first choice because it is free and directly tied to the ATO. If you want a more guided experience, Etax is the most consistently recommended paid option in Australian comparison articles.

For self-employed people, the best-known products are usually Hnry, Solo by MYOB, and TaxTank, but they solve slightly different problems: Hnry and Solo are more business/freelancer-oriented, while TaxTank focuses on live tax calculation and year-round personal finance tracking.

If you want, I can also give you:

• the best tax software for employees
• the best tax software for sole traders
• the cheapest options
• or a “best overall” shortlist with prices

For most Australians, the best tax software depends on whether you need simple DIY lodgement, year-round tracking, assisted preparation, or full business accounting.

Popular options that people actually use (based on reviews, market mentions, ATO integration, and user feedback) include the ATO’s own free tools, online tax agents like Etax and H&R Block, specialist apps like TaxTank and Hnry, and accounting platforms like Xero.

Free ATO Tools (Best for Simple Tax Affairs)

• myTax (via myGov) and the ATO app with myDeductions: These are the most widely used options for individuals and sole traders with straightforward situations. myTax pre-fills data from employers, banks, and others, lets you lodge directly with the ATO, and is free. myDeductions helps track receipts, car trips, work expenses, and donations throughout the year for easy import. Millions use these annually; they’re straightforward for basic returns but offer limited guidance on complex deductions like rentals.

Assisted Online Tax Lodgement (Popular for Convenience and Expertise)

• Etax: A long-standing favourite Australian online tax agent (since 1998) with strong user reviews for ease of use, seamless processes, and reliable service. It handles preparation and lodgement with accountants.
• H&R Block: Highly rated for in-person or online help, with good feedback on customer service, speed, and value. Often tops or ranks near the top in satisfaction surveys alongside Etax and ITP (Income Tax Professionals).

These are go-to choices if you want professional review without a full accountant.

Year-Round Tax Tracking and Management Apps

• TaxTank: Frequently recommended for employees, property investors, share/crypto holders, and sole traders. It integrates bank feeds, calculates your tax position in real time using Australian rules, tracks deductions (including vehicles, work-from-home, and depreciation), and supports multiple income types. Users praise its proactive approach over end-of-year scrambles.
• Hnry: Popular with sole traders, freelancers, and contractors for its “set-and-forget” model. It calculates, deducts, and pays tax/GST/Medicare automatically from income, handles invoicing/expenses, and lodges returns via accountants. It’s a percentage of income (capped).
• Other mentions: propkt (strong for rental properties and depreciation tracking) and Thriday (all-in-one for sole traders combining banking, accounting, and tax).

Business/Accounting Software (Widely Used for Ongoing Compliance)

• Xero: The dominant platform in Australia for small businesses and many sole traders. Excellent bank feeds, ATO integration (GST/BAS/STP), invoicing, reporting, and a huge app ecosystem. It’s the top choice in practitioner surveys for usability and market share.
• MYOB and QuickBooks Online: Strong alternatives, especially MYOB for payroll/inventory depth and QuickBooks for cost-conscious users or freelancers. All handle Australian tax requirements well.

Quick Tips for Choosing

• Simple employee/PAYG: Start with the free ATO app + myTax.
• Complex (rentals, investments, multiple incomes): TaxTank or an online agent like Etax/H&R Block.
• Sole trader/contractor: Hnry or Xero/Thriday.
• Business with staff/inventory: Xero or MYOB.
• Always ensure ATO compatibility. Many tools integrate directly or export reports for myTax/accountants. Costs range from free to subscription-based (e.g., ~$50–$150+/year for apps) or percentage-based.

Check current pricing, trials, and ATO updates, as features evolve. For complex situations, consider a registered tax agent. These options reflect what’s commonly discussed and reviewed in 2025–2026 Australian sources.

In Australia, the choice of tax software depends entirely on whether you are an individual with basic income, a sole trader, a property or stock investor, or a small business owner. Unlike other regions, most everyday Australians do not use massive commercial DIY programs like TurboTax (which is geared toward the US market). Instead, the standard practice is to use the government's highly optimized, free portal or local, digital platforms designed for specific tax structures.

➡️ The Free Government Gold Standard (Individuals & Simple Returns)

ATO myTax (via myGov): Best For: The vast majority of Australian employees, salary earners, and those with simple tax affairs. Standout Feature: It is entirely free and securely built straight into your personal Australian Taxation Office (ATO) online portal via myGov. Community Feedback: Highly praised across communities like r/AusFinance on Reddit for being incredibly fast. If you wait until late July or August, almost 90% of your salary, private health insurance, and bank interest automatically pre-fills.

➡️ Top Online Tax Return Agents (Self-Filing with Human Review)

For individuals who want to maximize deductions or feel uncomfortable filing entirely on their own, online tax agents provide an intermediate web portal. They charge a tax-deductible fee to have real accountants review your submission before it hits the ATO.

Etax: Best For: Individuals looking for an easy-to-use checklist with built-in accountant support. Standout Feature: Consistently wins multi-year consumer awards on ProductReview Australia. It guides users through an intuitive, step-by-step interview format and offers live web-chat support with qualified accountants to verify your claims. One Click Life: Best For: Fast, mobile-first mobile lodgements. Standout Feature: A rapidly growing fintech platform that allows you to pull your ATO data instantly and lodge a basic return on your phone in just a few clicks.

➡️ Best Platforms for Freelancers and Sole Traders

If you are a gig worker, contractor, or sole trader, standard tax software is often inadequate because you must consistently track Goods and Services Tax (GST) and Pay As You Go (PAYG) instalments.

Hnry: Best For: Hands-off sole traders and freelancers who want their tax automated. Standout Feature: Functioning as a "managed tax platform," Hnry gives you a dedicated business bank account. Whenever a client pays you, the software automatically calculates, slices out, and pays your income tax, GST, and Medicare levy directly to the ATO. A team of real accountants also handles your quarterly Business Activity Statements (BAS) and end-of-year lodgement.

➡️ Specialized Real-Time & Asset Tracking Software

TaxTank: Best For: Property investors, share investors, and crypto traders who want year-round oversight. Standout Feature: Unlike end-of-year filing apps, TaxTank connects straight to your bank feeds using Open Banking. It automatically allocates transactions into dedicated "tanks" (e.g., property, work, crypto), continuously calculates Capital Gains Tax (CGT) or depreciation, and projects your live tax position 365 days a year. Sharesight: Best For: Portfolio tax reporting. Standout Feature: Essential for investors, Sharesight acts as a brilliant companion tool that aggregates dividends, tracking corporate actions and generating exact AMMA tax statements that match the line item codes required on your myTax or agent forms.

➡️ Best Small Business Accounting & Tax Software

For registered businesses, companies, and employers with Single Touch Payroll (STP Phase 2) compliance obligations, the landscape is firmly dominated by the "Big Three" cloud accounting platforms.

Xero: Best For: Overall business accounting and the absolute market standard in Australia. Standout Feature: Holding roughly 60% of the local market, Xero features incredibly tight ATO integrations for lodging BAS and automated superannuation. Nearly every registered tax agent and accountant in Australia natively works with Xero data. MYOB: Best For: Established businesses with deep payroll, complex inventory, or hybrid desktop/cloud preferences. Standout Feature: Australia’s longest-running accounting software company. It features exceptionally robust compliance mechanics tailored tightly to Australian industrial awards and workforce payroll frameworks. QuickBooks Online (Australia): Best For: Budget-conscious small businesses wanting heavy automation. Standout Feature: Backed by Intuit, the Australian iteration of QuickBooks Online provides aggressive promotional price matching and sharp base-tier subscription costs while effectively processing native GST workflows.

💡 Which one should you pick?

If your income is strictly from a standard TFN salary/wage job, stick to myTax via myGov—there is no need to pay an app for what the ATO already pre-fills for free. If you have complex investment properties, a side hustle, or want professional reassurance, consider a hybrid online portal like Etax or TaxTank. If you operate entirely as a sole trader or freelancer, Hnry will save you hours of admin.

To help me tailor this, what is your primary income source (e.g., TFN salary, sole trader, or investments) and do you have any complex tax structures like trust entities or crypto portfolios?