CPA urges sweeping tax reform to boost growth
Australia’s complex tax system is holding back growth and investment, CPA Australia has warned, calling for urgent reforms to cut compliance costs and simplify rules for both large and small businesses.
In a submission to the Board of Taxation’s Red Tape Reduction Review, the nation’s largest accounting body outlined major issues with the system and the solutions needed to fix it.
For large businesses, CPA Australia urged to streamline international reporting, simplify overlapping anti-avoidance rules, and reform compliance-heavy regimes like FBT.
The body also recommended reforms such as more flexible Family Trust Elections, a simplified FBT framework, and the revival of the “Fix-It Squad” – a joint taskforce of Treasury, ATO, ASIC and other agencies – to help small businesses.
Tax Lead at CPA Australia, Jenny Wong said the system has been a barrier for growth.
“Our members consistently report that red tape diverts resources from core business activities and innovation, while presenting a significant compliance cost,” Wong said.
“We are therefore urging the government to take decisive action to streamline tax administration, reduce duplication and create a more supportive environment for investment and entrepreneurship.”
The submission also callled for long-term structural improvements, arguing that while quick wins are valuable, sustained reform is essential.
“Cutting tax red tape is not just about quick wins, it’s about creating a roadmap for sustained improvement,” Wong said.
“By reducing unnecessary complexity and compliance costs, Australia can unlock productivity, attract investment and support the success of businesses of all sizes.”
The body has further warned that Australia risks falling behind global peers, with slowed innovation and redirected investment if sweeping reforms does not occur.
Moreover, it has said the simplification of tax system is not only a technical necessity but a strategic economic priority.
She left off other ridiculous things like indexation of TBC’s and apportionment rules, refundable franking credits and inconsistent death benefit rules. And 296 is coming.
Not to mention allowing accountants to access the ATO portal including super details but they can’t typically advise on super. Advisers can advise on super but can’t access the portal. This one stupid situation alone costs 10’s of millions in lost productivity plus an increase in the risk of mistakes.
Yep, it seems like every day I am receiving some communication from the ATO. Your installments have changed, here’s your new installment, your installment is due soon, pay your installment now, and then the same for BAS, FBT, Superannuation, and employee PAYG. Constant updates to MYOB or Xero because the rules change approx every two weeks. Add on the costs of all the ASIC levies, company statements, business name renewals, trademark renewals, logo renewals, PI insurance etc.. We are drowning in unproductive paperwork and legislation. I feel like I am working for the government and not the small business that employs me. No wonder productivity, innovation, R&D are in the toilet…we are all metaphorically and financially drowning under these regimes.