Tax Preparation Franchises in Australia - Industry Market Research Report

Tax Preparation Franchises in Australia - Industry Market Research Report

Tax Preparation Franchises in Australia

Firms in the Tax Preparation Franchises industry mainly service individuals and small businesses, and assist clients in preparing their taxes. The industry benefits from the mandatory nature of tax lodgements, which provides operators with a stable source of demand. However, factors such as employment conditions, investment levels and the number of small businesses influence industry revenue. Weak economic conditions brought on by the COVID-19 pandemic have contributed to falling industry revenue over the past five years. Rising unemployment over 2019-20 and 2020-21 has limited demand from individuals over the period. Financial pressure has weighed on small businesses and has led to many of them closing down, limiting the client base for industry operators over the past five years. Industry revenue is expected to decline at an annualised 2.4% over the five years through 2021-22, to $203.5 million. This trend includes an anticipated rise of 0.2% in the current year, due to a falling unemployment rate and a rise in the full-time workforce.

Industry participants provide tax-return preparation services 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 processing services.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.