Date posted: 09/02/2024

Experts agree tax reform must be a priority

More than 90 per cent of tax and superannuation experts believe nationwide tax reform must be undertaken, according to a new survey by peak accounting body, Chartered Accountants ANZ (CA ANZ).

The survey was conducted with accountants who operate or have a specific interest in the tax and superannuation fields, following the Federal Government’s announcement of changes to the Stage 3 tax cuts.

“It’s no surprise that the experts who deal with these tax matters each and every day are calling for reform,” said CA ANZ Chief Executive Officer, Ainslie van Onselen.

“The time for ongoing reviews is over. We’ve said it before, and we will keep saying it – we need a plan detailing how Australia will achieve tax reform.

“Interestingly, among the experts, the number one reform area has been identified as stamp duty, followed by income tax and the GST.

“It shows just how complex any reform will be as stamp duty is a state-based tax, and that will require state and Federal Governments to work together which our members also identified as a key barrier to any reform, behind a lack of political will and the relative ease of tinkering with existing taxes.

“A ‘funding the Federation’ roadmap should be an urgent priority for the Government – if not for today then certainly for generations to come.

“While the changes to Stage 3 tax cuts have received lots of attention since they were announced, our members were split down the middle on whether those changes are a good or bad thing, with 52 per cent supporting the move and 48 per cent against.

“47% percent of those against the changes believe they don’t properly address bracket creep, while 47% of those supporting the changes believe it makes tax cuts more equitable.

“Half the respondents strongly or somewhat agreed that the changes would stimulate consumer demand, while 45 per cent strongly or somewhat agreed that the changes would be inflationary.

“It’s why in our recent Pre-Budget submission to the Federal Government, we argued that substantive tax reform was needed to cope with an ageing population and to maintain global competitiveness in a digital environment.

“CA ANZ will continue our advocacy on behalf of our more than 136,000 members with the Federal Government in the led up to the Federal Budget in May,” Ms van Onselen said.

Stage 3 Tax Cuts Changes Member Survey

Read now