The May 2024 Federal Budget should continue the government’s policy of budget repair, lest higher interest rates and inflation diminish Australia’s ability to withstand future economic shocks.

CA ANZ’s submission reflects feedback from our members, particularly those in public practice who know the hardships being experienced by small and medium sized businesses carrying large debt loads. More insolvencies are expected and this area needs more policy focus and resourcing. Many members are concerned at the quality and timeliness of government consultations, policy design and implementation. They also report noticeable declines in the service standards of key regulators.

Managing Australia’s transition to net zero in a just and orderly manner is an immediate priority. Key to this transition is ensuring that investors, business, and the community can rely on climate-related disclosures for decision making.

Substantive tax reform is still needed. Broadening the Goods and Services Tax base and rate is required to relieve strain on the income tax system. In addition, the equity of the tax system, especially intergenerational equity, needs to be considered to help support the costs of the ageing population.

Short term recommendations include:

• The development of an overarching sustainability reporting framework.
• An ATO ‘booking’ service to facilitate resolution of technical issues and tax debt repayments.
• Replacing annual superannuation contribution caps with lifetime caps.
• Efficiency gains from improved technology links between government and business.
• More investment in education and skills in digital, AI, sustainability, accounting, and financial capability.

In the longer term, CA ANZ also calls for:

• Substantive tax reform to relieve the strain on the income tax system, address intergenerational equity, and help fund the costs of an ageing population.
• Funding towards the eventual mandatory adoption of digital reporting by listed entities.