Artificial intelligence (AI) and machine learning might be revolutionising everything from healthcare to finance, but when it comes to your tax return, "close enough" simply isn't good enough. So why doesn’t TaxTank rely on full AI categorisation just yet? Because unlike other platforms, we prioritise accuracy over automation, especially when tax compliance is on the line.

TaxTank is the only platform in Australia that automatically calculates individual tax at the source. That’s not just impressive, it’s practically unheard of. Most software avoids this level of complexity altogether because the Australian tax system is, frankly, a labyrinth of over 6,000 pages of legislation, rules, thresholds, and exceptions.

But here’s where it gets even more complex: it’s not just about assigning expenses to a category, it’s about allocating them correctly based on the income type, taxpayer structure, and the specific compliance rules that apply.

Take a professional subscription, for example. It might be fully deductible against your PAYG income if it directly relates to your employment, but that same subscription might have no relevance to your sole trader business or rental property portfolio. The ATO’s rules are clear: deductions must have a direct nexus to the income they relate to. That means blanket categorisation just won’t cut it.

And if you’ve got multiple properties or income streams, say, two rental properties, a sole trader gig, and employment income, those rules multiply. Every deduction must be accurately tracked and allocated to the right property or business. That’s not just best practice, it’s essential for compliance.

In short, it’s not just about categorising transactions, it’s about getting the right deduction in the right part of the tax return, for the right amount, at the right time. Until AI can reliably navigate all that, we’re staying focused on building the most precise tax engine in the market.

Because in tax, almost right is still wrong.

AI is absolutely on our radar. As we continue to refine our platform, we see enormous potential for machine learning to assist in areas like predictive categorisation, automated deductions, and enhanced insights. But rather than rushing AI-driven features that may compromise accuracy, we are committed to getting the fundamentals right first.

In the future, AI will help users streamline tax time even further, making it easier to categorise transactions, identify potential deductions, and optimise tax outcomes.

When the time is right and when we can guarantee AI-driven insights are just as precise as our core tax engine, TaxTank will embrace AI in a way that truly benefits our users.

At TaxTank, we don’t just follow trends. We set new standards. We are committed to delivering the best, most accurate, and automated tax experience available. While AI is exciting, our immediate focus remains on perfecting tax calculations so that every user gets the most reliable results possible.

AI will come. But first, we are making sure TaxTank remains the gold standard in individual tax automation.

Stay tuned. We have big things ahead!