Australia’s largest accounting physique has thrown certified assist behind Treasurer Jim Chalmers’ productiveness reform agenda, however warns the federal government can not afford to delay complete tax overhaul whereas pursuing regulatory quick-wins.
What’s taking place: CPA Australia’s management has endorsed the course from Chalmers’ latest financial reform roundtable, notably welcoming “inform us as soon as” compliance reforms and regulatory discount measures as quick priorities.
Why this issues: With Australia’s productivity growth stagnating, enterprise leaders are pushing for pressing motion on the regulatory burden that’s constraining progress, whereas arguing broader tax system reform can’t be sidelined.
Fast wins prioritised
CPA Australia Chief Govt Officer Chris Freeland AM says the organisation is “particularly happy” that their suggestion for ‘inform us as soon as’ reform has been recognised as a quick-win measure.
“Requiring people and companies to repeatedly present the identical data to authorities is a transparent instance of the inefficiencies holding again productiveness,” Freeland mentioned. “Addressing this sends a powerful sign that the federal government is listening and performing on enterprise considerations.”
The regulatory burden facing SMEs has turn into a vital situation, with CPA Australia persistently advocating for streamlined compliance processes that cut back administrative prices for companies.
Freeland additionally welcomed Dr Chalmers’ dedication to undertake proposals to chop pointless regulation, together with these recognized by the Productiveness Fee, and referred to as for the federal government to finalise its nationwide AI functionality plan.
Tax reform urgency
Regardless of the deal with quick wins, Freeland emphasised that complete tax reform should stay a precedence and can’t be constrained by short-term political concerns.
“Tax reform can’t be delayed, nor ought to the scope be hamstrung by short-term concerns,” he mentioned. “All taxes should be thought of with a view to making sure that our tax system helps to encourage funding, boosts productiveness and drive financial progress.”
CPA Australia advocates for lowering Australia’s over-reliance on private and enterprise taxes, together with what Freeland describes as “significant GST reform.”
Compliance burden focused
The ‘inform us as soon as’ initiative addresses a elementary inefficiency the place companies should present an identical data to a number of authorities businesses, creating pointless administrative overhead that diverts assets from productive actions.
Whereas supporting most quick measures, Freeland urged warning on the proposed road-user cost, calling for complete impression evaluation.
“As gas excise income declines with the rise of electrical automobiles, a highway consumer cost seems logical,” he mentioned. “But it surely should be utilized with a transparent understanding of its web impression on income and shopper behaviour.”
Cautious highway forward
Regardless of the optimistic reception, Freeland acknowledged the challenges forward in implementing significant reform.
“There’s cautious optimism within the air, however the highway to reform isn’t simple,” he mentioned. “The necessity to enhance productiveness is clearly pressing, however we should be ready for challenges alongside the way in which. What issues now could be turning intent into motion, swiftly and thoughtfully, with out unintended penalties.”
The accounting physique’s response displays broader enterprise sentiment round authorities reform initiatives, supporting deregulation and effectivity measures whereas sustaining stress for complete tax system overhaul that goes past incremental modifications.
Extra at cpaaustralia.com.au
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