Mounting Cost Pressures
Australian accounting firms are set to increase their fees in 2025, with 80% of firms indicating plans for price hikes this year, primarily due to escalating business costs. The survey, encompassing responses from 165 Australian accounting firms, suggests that nearly half of these businesses are looking at a 5% increase in prices, while 19% are preparing for a 10% rise. A key factor behind this trend is the increasing complexity of tax and compliance services, leading to a need for more extensive and specialized work. • Increased complexity of services
• Rising business costs
• Competition from global accounting firms
These factors contribute to the rise in fees, which is expected to continue throughout the year. Strategic Pricing Adjustments
Ignition CEO Greg Strickland emphasizes the potential for firms to enhance revenue and profitability through strategic pricing adjustments. According to Strickland, only a small fraction of firms are increasing fees with profit margins or revenue in mind.
“By combining smart pricing strategies with technology and seamless automation, we aim to empower professional services businesses to increase prices with confidence, without awkward client conversations,”
Strickland highlights the importance of adopting a data-driven approach to pricing, using metrics such as:
cost-plus pricing and value-based pricing to determine optimal prices. This approach enables firms to balance the need for price increases with the potential to retain clients and maintain market share. Table: 2025 Tax and Compliance Pricing Benchmark
| Service | Percentage of firms charging over $300 | Percentage of firms charging over $3,000 |
| — | — | — |
| Individual tax returns | 26% (up from 16%) | 12% (up from 9%) |
| Company or trust annual accounts and tax returns | 23% (up from 19%) | 11% (up from 9%) |
| BAS lodgements | 22% (up from 17%) | 9% (up from 7%) |
| Tax planning services | 20% (up from 15%) | 8% (up from 6%) |
A key takeaway from the 2025 report is the significant increases in fees for BAS lodgements and tax planning services. These services are expected to continue to grow in importance, with more firms moving into higher charging brackets. Example: A small business with a turnover of $100,000 may see a 10% increase in fees for BAS lodgements, resulting in an additional $10,000 per year.
The survey also highlights the need for firms to stay up-to-date with changing tax laws and regulations, ensuring they can provide accurate and timely advice to clients. By adopting a data-driven approach to pricing, and leveraging technology and automation, firms can increase prices with confidence, without affecting client relationships. The report emphasizes the importance of professional development and training for accountants, as they navigate the changing landscape of tax and compliance services. A strong> focus on data analysis and interpretation is essential for firms to remain competitive and adapt to shifting market demands. Ultimately, the 2025 Tax and Compliance Pricing Benchmark provides valuable insights into the pricing trends within the Australian accounting sector, highlighting the need for firms to adapt and evolve to meet the changing needs of clients.