ChatGPT Prompts for Australian Tax Agents: A Practical Guide

Using ChatGPT effectively as a tax agent requires knowing which tasks it's suited for and how to frame your requests. This guide provides tested prompts for the tasks where AI adds the most value — with clear notes on what to verify before using the output professionally.

Important: Tax advice requires professional expertise and judgement. All AI-generated content should be reviewed by the tax agent before use with clients or in ATO correspondence. Never rely on AI for specific tax determinations without professional verification.

Research Prompts

Initial research on an unfamiliar issue

"I'm an Australian registered tax agent researching [tax issue — e.g. the tax treatment of cryptocurrency staking rewards, deductibility of home office expenses for employees, CGT treatment of a deceased estate]. Provide an overview of the relevant Australian tax legislation and ATO guidance. Note: this is for initial research purposes — I will verify all information against current legislation and ATO guidance before advising a client."

Summarising ATO guidance

"Summarise the key points of [ATO document — e.g. TR 2023/1, PCG 2021/4, ATO guidance on work-related expenses] in plain English. Focus on the practical implications for a tax agent advising individual taxpayers. Note: I will verify against the original document."

Explaining a tax concept to a client

"Explain [tax concept — e.g. capital gains tax, negative gearing, the small business CGT concessions, Division 7A] in plain English for a client with no tax background. Use a practical example relevant to an Australian taxpayer. Keep it under 250 words. Avoid jargon."

Identifying potential deductions

"A client is a [occupation] employed by [type of employer]. Based on their occupation, what work-related deductions might be worth investigating? Note: I will verify each potential deduction against ATO guidance and the client's specific circumstances before claiming."

Client Communication Prompts

Information request for individual return

"Write a professional email to an individual tax client requesting the information needed to prepare their [year] tax return. The client is [describe — e.g. a PAYG employee with investment properties, a sole trader, a retiree with super income]. List the specific information and documents needed. Keep it clear and organised. Sign off as [name], Registered Tax Agent."

Explaining return outcome

"Write a plain-English email explaining a client's tax return outcome. Refund/liability: [amount]. Key factors affecting the outcome: [list]. Any items the client should be aware of for next year: [list]. Keep it concise and avoid jargon. Sign off as [name], Registered Tax Agent."

Explaining an ATO notice

"Write a plain-English explanation of what [type of ATO notice — e.g. a notice of assessment, an amended assessment, a payment arrangement request] means for a client. Explain what the client needs to do and by when. Keep it reassuring but clear about any action required."

Tax planning communication

"Write a professional email to a client outlining [tax planning strategy — e.g. making additional super contributions before 30 June, prepaying deductible expenses, timing a capital gain]. Explain the strategy, the potential benefit, and what the client needs to do. Note: I will review this for accuracy and appropriateness for the client's specific situation before sending."

ATO Correspondence Prompts

Response to ATO query

"Help me structure a response to an ATO query about [subject — e.g. a client's work-related deduction claims, a rental property deduction, a capital gain calculation]. The ATO has asked for [describe what they've requested]. Key facts supporting the client's position: [list]. Draft a professional, factual response. This is a first draft for tax agent review."

Objection to assessment

"Help me structure an objection to an ATO assessment. The assessment relates to [describe the issue]. The grounds for objection are: [list]. Key supporting facts and legislation: [list]. Draft a professional objection letter. This is a first draft for tax agent review and will be verified against current legislation before submission."

Request for private binding ruling

"Help me structure a request for a private binding ruling on [tax issue]. The relevant facts are: [describe]. The question I want the ATO to rule on is: [state the question]. Draft a professional ruling request. This is a first draft for tax agent review."

Practice Management Prompts

Client engagement letter

"Draft an engagement letter for a tax agent practice. Services to be provided: [list]. Fees: [describe fee structure]. Client responsibilities: [list]. Confidentiality provisions. Limitation of liability. The practice is [name], located in [state], registered with the Tax Practitioners Board. This is a template requiring legal review before use."

Deduction checklist for occupation

"Create a comprehensive deduction checklist for a [occupation] employed in Australia. Include: work-related expenses, vehicle and travel, home office, self-education, and other relevant categories. Note which items require receipts and which can be claimed without receipts up to the ATO's threshold. Format as a checklist."

Year-end tax planning checklist

"Create a year-end tax planning checklist for individual Australian taxpayers. Include: income timing strategies, deduction timing, superannuation contributions, investment considerations, and record-keeping reminders. Format as a checklist with brief explanations of each item."

Tips for Tax Agents Using AI

Always verify against current legislation and ATO guidance: Tax law changes regularly. AI tools may not have current information about rates, thresholds, and legislative amendments. Always verify against the ATO website, current legislation, and authoritative research tools.

Be specific about the Australian context: Mention specific Australian terms — PAYG, CGT, GST, Division 7A, small business concessions — when relevant. This helps AI produce output appropriate for Australian conditions.

Never use AI for specific tax determinations: AI can help you research and understand issues, but the determination of how the law applies to a specific client's circumstances requires professional judgement.

Review all ATO correspondence carefully: ATO correspondence has legal implications. AI-generated drafts must be reviewed carefully for accuracy, completeness, and appropriate tone before submission.