Chartered Accountants Australia and New Zealand (CA ANZ) has outlined its support for a series of tax, regulatory, and energy reforms aimed at fostering a dynamic and resilient economy.
These reforms are designed to promote sustainable growth, innovation, and a transition to net zero emissions.

Corporate Tax Reform

• CA ANZ, advocates for a more efficient mix of taxes, supporting the reduction of the headline company tax rate to 20%. However, it warns that transitioning to a cashflow tax (CFT) would be complex and costly. 
• Expresses concerns about introducing a net cashflow tax of 5%, calling for more analysis on the costs and benefits.

Regulatory Reform

• CA ANZ endorses setting a clear agenda for regulatory reform, recommending it be mandated in the Public Governance, Performance and Accountability Act 2013.
• While supporting high-level scrutiny of regulations, CA ANZ opposes the appointment of an independent statutory commissioner for the Office of Impact Analysis.

Investing in Cheaper, Cleaner Energy and the Net Zero Transformation

• CA ANZ, supports lowering the threshold for the Safeguard Mechanism, with a phased introduction for new facilities and support and capacity building for smaller facilities.
• Additionally, supports removing the exemption of electric vehicles from Fringe Benefits Tax and providing alternative assistance.

Harnessing Data and Digital Technology

• CA ANZ, supports a gap analysis of current rules before considering AI-specific regulation, stressing that AI-specific regulation should be a last resort. It calls for agile, technology-neutral regulation due to the rapidly changing AI landscape and emphasises the need for accountability in AI development, including environmental impact disclosures.
• Strongly supports making digital financial reporting the default for disclosing entities, with a phased approach. It recommends aligning Australia’s digital taxonomies with international standards (IFRS) and advocates for a centralised portal managed by ASIC for public access to digital financial reports.

Building a Skilled and Adaptable Workforce

• CA ANZ, recommends national leadership to ensure equitable access to educational technology and AI in schools. It highlights risks such as rapid change, complexity, digital inclusion, financial burdens, and scaling challenges.
• Recommends evaluating the impact of the 120% small business boost for skills and training before trialling new incentives. It advocates for SME advisory services to address capability gaps in cash flow management, data, technology, AI, and cyber security.
• Supports removing excessive  occupational entry regulations and improving mobility for workers. It advocates for reforming qualification requirements for financial advisers and expanding entry pathways for auditors of lower-risk entities.