Taxing times: Revenue increases due to greater household investment and business numbers

Firms in the Tax Preparation Franchises industry mainly service individuals and small businesses. The main point of differentiation of industry players is holding the knowledge that enables them to maximise clients' tax returns without breaking any taxation laws. While the rise of online tax submissions has limited industry growth over the past five years, individuals with complex tax returns, and small businesses, are likely to continue engaging tax experts to submit their tax returns.Although the industry has low volatility due to the mandatory requirement of tax lodgements, revenue is still influenced by employment conditions, household discretionary income and investment more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • Tax preparation specialists are increasingly targeting small enterprises over individuals
  • Increases in myTax and agent submissions have forced players to diversify business offerings
  • Industry firms are projected to benefit from the rising number of businesses
  • Industry Report - Industry Locations Chapter

    The geographic spread of industry businesses broadly follows the distribution of the Australian population and economic activity. This is because services provided by the industry largely relate to transactions between private individuals and small businesses. As a result, the majority of industry enterprises are concentrated in the eastern seaboard, with New South Wales, Victoria and Queensland containing more almost 80% of all industry enterprises.A greater number of rural franchises are projected to be established over the next five years. This is expected to be due to the increasing adoption of online tax lodgements systems in inner-city locations and the relatively small number of tax franchise businesses in rural locations compared with busy city areas. Fra...purchase to read more.

    Additional Insights for the Tax Preparation Franchises Industry

    IBISWorld has determined the most important Key Success Factors for the Tax Preparation Franchises are:

  • Being part of a reputable franchising chain
  • Access to highly skilled workforce
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Demand from auxiliary finance and investment services and Number of businesses in the Tax Preparation Franchises industry impact industry performance..

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    What's in this report

    What is the Tax Preparation Franchises Industry?

    Industry participants provide tax-return preparation services and operate as part of a franchise business structure. The industry includes businesses that are owned directly by the franchisor. Operators do not provide accounting, bookkeeping, billing or payroll process services.

    Industry Products
  • Personal tax-return services
  • Investment tax-return services
  • Small business tax-return services
  • Other tax services
  • Industry Activities
  • Tax consultation services
  • Tax-return preparation services
  • Tax review services
  • Other taxation services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from auxiliary finance and investment services
  • Number of businesses
  • Real household discretionary income
  • National unemployment rate
  • Total full-time workforce
  • High income earners

  • Current Performance
  • Industry drivers and growth
  • Agents vs myTax
  • Spreading the net
  • Competition and the franchise model
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry drivers and threats
  • Franchise arrangements
  • Superannuation boom
  • Table: Tax Preparation Franchises Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tax Preparation Franchises Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Advertising Services
  • Education and Training
  • Internet Service Providers
  • Software Publishing

  • Products & Services
  • Personal tax-return services
  • Small business tax-return services
  • Investment tax-return services
  • Other tax services
  • Chart: Tax Preparation Franchises Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals
  • Small business owners
  • Other sectors
  • Chart: Major Market Segmentation for the Tax Preparation Franchises Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Tax Preparation Franchises

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tax Preparation Franchises Industry

  • Industry Globalization
    H&R Block, ITP Australia,
  • Table: H&R Block - financial performance
  • Table: ITP Australia - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tax Preparation Franchises Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Tax Preparation Franchises Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Above-The-Line Advertising
  • Includes traditional mass media advertising through newspapers, magazines, radio, TV, the internet and billboards. This is often targeted to reach expected key demographic groups and online audiences.
  • Below-The-Line Advertising
  • An advertising strategy that uses direct means of communication, such as direct mail or email, and incentives such as coupons, competitions and price discounts, rather than mass media.
  • E-Filing
  • The electronic method of lodging tax, either through specialised software packages or online platforms.
  • Tax Preparation
  • The process of preparing and lodging tax for compensation, and is usually either income tax or investment tax.
  • Taxpayer
  • Any individual earning an income above the tax-free threshold in Australia must pay tax to the Australian government.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Tax Preparation Franchises market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
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    This report on Tax Preparation Franchises:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Tax Preparation Franchises market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Tax Preparation Franchises, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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