Chartered Accountants Australia and New Zealand (CA ANZ) has lodged a submission on the Board of Taxation’s red tape reduction review, calling for changes to Australia’s tax system. The submission highlights the significant compliance burden faced by businesses and recommends steps to simplify tax administration, improve efficiency and support productivity.

Addressing the compliance challenge

CA ANZ’s submission draws on member feedback revealing that tax compliance remains a major pain point for businesses of all sizes. Many organisations spend excessive time and resources navigating complex reporting requirements, which can stifle innovation and productivity. The submission notes that small and medium-sized enterprises are particularly affected, often lacking the capacity to manage growing regulatory demands.

Key recommendations for reform

To address these challenges, CA ANZ has outlined several recommendations including:

• Streamline and harmonise reporting for international tax obligations to reduce duplication and confusion
• Modernise the corporate tax residency rules
• Simplify and streamline the tax legislation for various areas including Division 7A, Fringe Benefits Tax, small business capital gains tax rollover provisions and the family trust election provisions
• Make the small business instant asset write-off permanent
• Consider automatically indexing the compliance cost savings measures in the tax legislation which would assist in preserving the effectiveness of these measures
• Invest in substantial enhancements to the ATO’s Online services for tax agents such as improved access to client data, real-time status updates, and expanded communication features to allow tax practitioners to self-serve effectively and efficiently.