Guide
How to use AI in tax preparation — a guide for Australian practitioners
Using AI in tax preparation works best as a draft-and-verify workflow: let AI do the modelling and the first pass, then review, verify against ATO sources, and sign off yourself. AI is good at summarising, surfacing and drafting; it is not a substitute for professional judgement, and — per the TPB's 2026 guidance — you remain responsible for every output and must get client consent before any client data goes into a tool.
Where AI helps in tax preparation
AI is strongest on the routine, time-consuming parts of the job — not the judgement. Used well, it can:
- Summarise a client's position from the numbers you already have.
- Surface the strategies and deductions that might apply, grounded in ATO sources.
- Draft a first-pass explanation or client-ready summary.
- Flag thresholds a client is near, for you to check.
Where the human must stay in the loop
The TPB's 2026 guidance is clear that AI does not replace professional judgement or transfer responsibility. So AI should not be the final word on a tax calculation, compliance position, or analysis of a client's financial data. Those are yours to verify and stand behind.
Treat AI output like a capable junior's draft: useful, but reviewed and signed off by you before it reaches a client.
A defensible workflow
Step by step, a practitioner-safe process looks like this:
- Consent first — obtain the client's consent before putting their information into any AI or third-party tool (Code item 6).
- Draft — let the tool model the position and draft the explanation.
- Verify — check every figure and reference against authoritative sources (ATO, legislation, current rates).
- Record — keep evidence that you reviewed and verified the output.
- Deliver — finalise under your professional judgement, as the adviser of record.
Why grounding and an evidence trail matter
Generic AI can draw on outdated or non-Australian sources, so a tool that grounds its output in ATO sources and lets you click through to verify is far safer for tax work. And a logged verify-before-you-advise step turns your review into evidence you met your obligations. Advisory Stack is built around both — but the responsibility to verify stays with you.
Authoritative sources
This article is general information for registered practitioners, not personal tax advice. Advisory Stack is a technology platform used by registered tax agents; the registered practitioner remains the adviser of record and is responsible for verifying any output before relying on it.
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