CPA urges sweeping tax reform to boost growth

Binaya Dahal

Journalist

17 December 2025

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.