CA ANZ, CPA Australia urge Labor to prioritise meaningful reform

CPA Australia and CA ANZ are welcoming the Albanese government into its second parliamentary term with the hope that it looks to improve business productivity, reform tax policy, and reduce regulatory pressure.

CPA Australia congratulated the re-elected government and called for it to “seize the opportunity of its renewed mandate to revitalise, reform and repair the Australian economy”.

The body said this parliamentary term needed to be heavily focused on revitalising businesses, delivering tax reform and repairing the budget.

Chris Freeland, chief executive of CPA Australia, said he was looking forward to the government delivering “a clear and optimistic vision” for how it planned to improve business productivity, inspire innovation and deliver a culture shift that bolstered growth.

“Amid so much global uncertainty, the government should implement a long-term strategic plan to improve Australia’s economic prospects, not just for this term but for future generations,” Freeland said.

“The Albanese government should revitalise business through improved policy development and consultation, removing regulatory burdens and barriers to growth, while inspiring more Australians to have a go themselves.”

Freeland added that, based on Australia’s regulatory regime, the country was currently a less attractive place to do business, which heavily impacted the vitality of its businesses as well as foreign investors.

To combat this, CPA recommended that the government focus efforts on repairing the budget to bring the deficit under greater control after a long period of “instability and uncertainty”.

“Further, the regulatory environment of recent years has made Australia a less attractive place to do business. A major contributor to this has been the increasing volume and complexity of regulation, and the uncertainty it creates,” Freeland said.

“Individual regulations are often well-intended, but the cumulative burden can overwhelm businesses, especially SMEs, and contributes to our productivity problem.”

In addition to promoting business growth through reduced regulatory pressure, the bodies revealed they would continue to push for holistic tax policy reform, a necessary and well overdue requirement.

CPA said reform was necessary to ensure bracket creep was reduced and Australians stopped depending on their personal income tax.

“The accounting profession has long called for a public discussion on substantive tax reform, free from the short-term political pressures that usually curtail any chances of genuine reform. We strongly advocate for a substantive and transparent review of all taxes at Commonwealth, state and local level,” Freeland said.

“The accounting profession also has a unique insight into the practical challenges created by out government policy, including our tax regime and a culture of red tape. We look forward to working with the government to create a more business-friendly environment that delivers economic prosperity and benefits to Australia.”

CA ANZ revealed it was urging Labor to effectively use this second term “to reform the nation’s broken tax system”.

The body echoed a similar sentiment to CPA, adding that there was now a real opportunity for meaningful reform that the system desperately needed.

Ainslie van Onselen, chief executive of CA ANZ, said the body was looking forward to working with the re-elected government and advocating for reform that made a difference to Australians.

“We are especially keen for the government to review our tax system and implement a long-term tax reform roadmap,” van Onselen said.

“We cannot continue to over-rely on personal income tax and, following the decisive victory, Labor has an opportunity to make a real difference beyond the election cycle.”

The flagged focus on productivity was also welcomed by the accounting body as it also pledged to work with the government to introduce the $1,000 standard deduction and broaden of sanctions available to the TPB.

Van Onselen added that CA ANZ would also continue to oppose the government’s planned tax on unrealised gains in superannuation balances over $3 million.

“We want the Albanese Government to go back to the drawing board and fix the major flaws in this policy – no one should be forced to borrow money or sell assets to pay their tax bill,” she said.

“CA ANZ has been concerned about the increased cost of business degrees and student debt for many years, so we support the move to wipe $16 billion from outstanding student loans, but it is a short-term solution which doesn’t address the source of the underlying debt – the cost of university degrees.”

“We will continue to advocate for more affordable accounting degrees by replacing the job-ready graduates’ package to make course fees fairer, unlock more opportunities and build a stronger pipeline of emerging professionals.”