CA ANZ pre-Budget submission targets red tape, investment in AI

Peak accounting body, Chartered Accountants Australia and New Zealand (CA ANZ), has signalled its intention to ensure next week’s Federal Budget introduces “substantive tax reform” and investments to “boost productivity”.

CA ANZ’s submission highlighted the importance of putting in place a roadmap and timeline to achieve reforms that would lessen the burdens on the income tax system, attack intergenerational equity and help to fund the ongoing costs of the country’s ageing population.

CA ANZ also expects the Federal Budget to consider the effect of red tape on improvements to the current tax system, as well as small business support measures.

“Our pre budget submission made it clear that it was time for a wider discussion about the tax system,” CA ANZ Group Executive of Advocacy and International Development, Simon Grant, said.

“Policymakers need to keep in mind the competitiveness of our personal tax system, especially considering the global talent shortage.

“We appreciate the economic headwinds the country is facing, so that’s why we shouldn’t be looking at sugar hits but rather substantive and sustainable reform.

“We need to make it easier for businesses to be in business – that includes having a skilled and educated workforce, so we will be looking for the Budget to extend the 120% training boost.

“Any improvements to boost productivity will be warmly received – a boost in productivity leads to a boost in income which will be welcome during the current cost of living challenges.”

CA ANZ’s submission also made the following calls for government reform:

• Support small business by keeping the instant asset write off scheme.
• Invest in building the human capital skills necessary to support the implementation of sustainability disclosure and assurance standards and the business transition.
• Build and implement a modern Company Register which links a Director’s ID to their relevant companies.
• Plan for the ageing population by removing the legal complexities and inconsistencies in the superannuation, taxation, age pension and aged care environments.
• Replacing the annual superannuation caps with lifetime caps.
• Improve productivity through education by targeting investments in digital, AI, sustainability, accounting, and financial capability.
• Improve financial literacy through the introduction of a national senior secondary accounting curriculum.

Australia’s main accounting body said it will have tax and superannuation experts in with government representatives during the Budget lock-up to provide expertise and insights on behalf of the profession, clients and wider community.