Sharesight

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!)

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?