Treasury commits to advising on tax system improvements in corporate plan

With a national housing price-to-earnings ratio of eight to one in 2025, compared to four to one in 2001 and three to one in 1987, Treasury released its latest corporate plan, emphasising economic performance and improved living standards.

Treasury released its Corporate Plan 2026–27 on Monday (24 August), committing to advising on tax system improvements and improving business activity.

“We will provide advice to the government on how to strengthen the budget to prepare for future economic shocks and manage long-term fiscal pressures,” Treasury said in its plan.

“We will also provide advice on the operation of the tax system and how it can be improved,” it said.

In its paper, Treasury said that it would support implementation of major tax and spending reforms to target equity, efficiency and intergenerational fairness.

“Reforms to the tax system aim to help more Australians realise home ownership, encourage productive investment and boost business activity.”

With a focus on monitoring global and domestic developments, Treasury noted in its plan the renewed emphasis on productivity, competition and better regulation.

Treasury said the renewed emphasis on these three aspects is crucial to Australia’s medium-term economic performance and improvement in living standards.

Further, Treasury said that it would advance National Competition Policy reforms, working with states and territories, to create a single national market and support worker mobility.

This follows the backlash from the accounting profession and broader business community against the 2026–27 budget changes.

Shortly following the budget announcement, the Institute of Financial Professionals Australia (IFPA) Research Foundation’s report, the Tax Policy Journal 2026, examined a growing mismatch between Australia’s rising long-term spending pressures and its relatively unchanged tax system.

“The Journal lays out the facts plainly – we cannot keep expanding government without rethinking how we found it,” Scott Heathwood, chairman of the IFPA, said.

Also following the budget announcement, the Commonwealth Bank said that more could have been done to reduce government spending in the coming financial year in light of the 2026–27 budget.

Further, calls for an improved tax mix came against the backdrop of Australia’s continued reliance on income tax, at 52.2 per cent for 2023–24.