When Is an Online Tax Return Too Complicated to Do It Yourself?

Every year, millions of Australians lodge their tax return online. For taxpayers with one employer, straightforward deductions and no investments or business income, self-lodgement is often simple and effective.

However, tax return complexity has little to do with how much you earn. A person on a high salary with one employer may have a straightforward return, while someone earning a moderate income could face additional tax obligations because they own a rental property, invest in shares, trade cryptocurrency or earn freelance income.

Tax returns rarely become complex overnight. Instead, they typically evolve as your financial circumstances change. Many people only realise their return has become more complicated when it's time to lodge.

This guide will help you assess whether your return is still suitable for self-lodgement or whether professional assistance could save time, reduce risk and help ensure everything is reported correctly.
 

How to Tell If Your Tax Return Is Becoming More Complex

Answer the questions below.

If you answer "No" to most of them, your tax return is likely straightforward and suitable for self-lodgement.

If you answer "Yes" to two or more, your return may involve additional tax rules, calculations or reporting requirements that deserve extra attention.
 

• Do you have income from more than one employer or source?
• Do you own shares, ETFs or managed funds?
• Have you sold an investment and triggered a capital gain or loss?
• Do you hold or trade cryptocurrency?
• Do you own a rental or investment property?
• Are you a sole trader, freelancer or gig worker?
• Have you earned overseas income or worked overseas?
• Have you received trust or partnership distributions?
• Have you experienced a major life change, such as retirement, separation, inheritance, redundancy or moving overseas?

 

Quick Takeaway

If you answered "Yes" to two or more questions, there's a good chance your tax return involves additional reporting obligations, calculations or deduction opportunities that are easy to miss.

While many Australians can still lodge online by themselves, a professional review may help identify overlooked deductions, reduce errors and provide greater confidence before lodgement.
 

A Quick Decision Guide

1. Your Tax Return Is Straightforward

Your situation:
 

• One employer
• No investment income
• No rental property
• No business or ABN income

 
Recommended option:
H&R Block's Online Tax Express is ideal if you want to prepare and lodge your own tax return. Our easy-to-use DIY platform lets you complete your return from home, with information automatically pre-filled from the ATO where available, personalised guidance throughout the process and occupation-specific tax tips to help you identify the deductions you may be entitled to.
 

2. Your Tax Return Has Some Additional Complexity

Your situation:
 

• Bank interest
• Share dividends
• Small amounts of investment income already pre-filled

 
Recommended option:
You can usually still lodge your own tax return, provided you carefully review your pre-filled information before submitting it. Online Tax Express makes this easier with built-in guidance, automatic ATO pre-fill where available and prompts designed to help you complete your return accurately and confidently.
 

3. Your Tax Return Is More Complex

Your situation:
 

• Rental property income
• Capital gains
• Cryptocurrency transactions
• Sole trader or ABN income
• Overseas income
• Trust or partnership distributions

 
Recommended option:
These situations often involve additional tax rules, calculations and reporting requirements. H&R Block's Online Tax Experts can prepare and lodge your tax return for you entirely online, giving you the convenience of lodging from wherever you are, backed by the confidence of a professional review before your return is submitted.
 

When Can You Lodge Your Own Tax Return?

Self-lodgement is generally appropriate when your financial circumstances are straightforward and have remained relatively consistent from previous years.

This often includes taxpayers who:
 

• Have a single PAYG employer
• Receive one income statement
• Claim standard work-related deductions with supporting records
• Have no investment income beyond basic bank interest
• Do not own a rental property
• Do not operate a business or earn sole trader income

 
If this sounds like you, preparing your own online tax return is often a practical option.
 

Signs Your Tax Return Is More Complex Than You Think

A tax return often becomes more complicated as your financial situation evolves. New investments, property ownership, side income or overseas earnings can introduce tax obligations that many taxpayers don't encounter every year.

The following situations commonly add complexity.
 

a. Multiple Sources of Income

Having more than one employer or income source can create multiple income statements, PAYG withholding considerations and additional reporting requirements.

Before lodging, confirm all income has been finalised and reported correctly.
 

b. Investments and Capital Gains

Buying and holding investments is usually straightforward, but selling shares, ETFs, managed funds or other assets may trigger capital gains tax (CGT).

Calculating cost base, applying CGT discounts and correctly reporting gains and losses are among the most common areas where taxpayers make mistakes.
 

c. Cryptocurrency

Cryptocurrency tax obligations are often broader than expected.

Selling, swapping, spending or gifting cryptocurrency may create a CGT event, while staking rewards and airdrops may also have tax consequences.

Because the ATO receives data from many cryptocurrency exchanges, maintaining accurate records is essential.
 

d. Rental Property

Rental property owners may need to:
 

• Apportion expenses correctly
• Distinguish repairs from capital improvements
• Calculate depreciation and capital works deductions
• Understand the tax impact of negative gearing

 
Rental property deductions remain one of the most common areas of tax return errors.
 

e. Sole Trader, Freelance and Gig Income

Earning income under an ABN introduces additional tax considerations, including:
 

• Business income reporting
• Deductible expenses
• Asset purchases
• GST and BAS obligations where relevant

 
Managing both employment income and business income can significantly increase return complexity.
 

f. Overseas Income

Australian tax residents are generally required to declare worldwide income.

Foreign employment income, investments and rental income may all need to be reported, while foreign income tax offsets may help prevent double taxation.
 

g. Major Life Changes

Events such as marriage, separation, retirement, redundancy, inheritance or moving overseas can affect:
 

• Tax residency
• Medicare levy calculations
• Private health insurance rebates
• Superannuation reporting

 
Even when income remains relatively unchanged, these events can create additional tax obligations.
 

Common Mistakes Australians Make When Lodging Their Own Complex Tax Return

As complexity increases, so does the likelihood of mistakes.

Some of the most common include:
 

• Missing income from a second job, freelance work or side hustle
• Incorrectly calculating capital gains or cost base
• Claiming rental property deductions incorrectly
• Omitting overseas income
• Forgetting to claim foreign income tax offsets
• Failing to keep supporting records
• Entering income that has already been pre-filled

 
Many of these errors are only identified after lodgement, potentially leading to amendments or ATO enquiries.
 

When Is Professional Tax Help Worth Considering?

Seeking professional support isn't about whether you're capable of completing your own tax return. It's about determining whether the additional complexity, time commitment and potential risk justify expert assistance.

Professional preparation becomes particularly valuable when your return includes:
 

• Multiple income sources
• Rental property income
• Capital gains
• Cryptocurrency transactions
• Sole trader income
• Overseas income
• Trust distributions
• Significant life changes

 
H&R Block's Tax Experts prepare thousands of Australian tax returns each year, including returns involving rental properties, investments, cryptocurrency and business income.

We can help:
 

• identify deductions you may be entitled to claim
• ensure income is reported correctly
• calculate capital gains accurately
• correctly report rental property income and expenses
• reduce the likelihood of amendments or ATO enquiries after lodgement

DIY vs Professional Help: Which Option Is Right for You?

Self-Lodgement May Suit You If:

 

• You have one employer and a single income statement
• Your deductions are straightforward and well documented
• You have no investment income beyond simple bank interest
• You do not own a rental property
• You have no business or ABN income
• Your circumstances are similar to previous years

 

Consider Professional Assistance If:

 

• You have multiple employers or income sources
• You've sold investments and triggered capital gains tax
• You hold or trade cryptocurrency
• You own a rental property
• You earn freelance, sole trader or gig economy income
• You received overseas income
• A major life event has affected your financial circumstances

 
For straightforward situations, online self-lodgement can work extremely well.

When your return involves investments, property, cryptocurrency, business activities or international income, professional support can often provide value through additional deductions identified, errors avoided and time saved.
 

Lodge Your Tax Return Online With Confidence

Whether you prefer to lodge your own return or have it prepared by a Tax Expert, H&R Block offers an online solution to suit your circumstances.

Use Online Tax Express for straightforward returns, or choose Online Tax Experts for professional preparation and review when your tax affairs become more complex.

Start your online tax return with H&R Block today and choose the level of support that's right for you.