Praemium Limited has signed a deal with E*Trade Australia to provide the tech firm's tax reporting solution to all 350,000 of the latter's Australian clients.

Praemium said the arrangement will enable E*Trade clients to manage their investment tax reporting conveniently online.

In turn, Praemium will milk a "significant fee" from the base service with growth potential depending on usage patterns, the ASX-listed firm said.

Under the terms of the arrangement, Praemium will not provide these services to any other online brokerage business for a period of at least 2 years from launch.
The detailed terms of the arrangement remain confidential.

Arthur Naoumidis, group chief executive of Praemium said the deal was a positive sign that companies were still committed to offering online investment solutions in spite of the market turmoil.

E*TRADE Australia managing director, Stuart Sayers said the service "takes the hassle out of preparing for taxes related to investments" - allowing clients to do their tax reporting conveniently online.

"Our goal at E*TRADE is to make the investment process as easy and convenient as possible so our customers can concentrate on their trading strategies and not on administration," he said.

E*Trade is Praemium's latest client following last month's deal with UK-based Price Bailey Private Client.

Praemium was engaged to provide its SMA infrastructure for the administration of Price Bailey's discretionary management business.

Price Bailey is targeting $221 million under management over the next three years and is the 40th largest UK accounting firm in the UK.