Yesterday’s GDP figures revealed a jump in household savings, suggesting that many Australians are already bunkering down, reducing personal debt levels and saving for tough times ahead.
“The financial impacts of COVID-19 will be felt by individuals, business and the economy for the foreseeable future,” said Australian Tax Leader Michael Croker at Chartered Accountants Australia and New Zealand (CA ANZ).
And with the Federal Budget on 6 October now looming as a critical date when we will learn about the government’s recovery plans, Chartered Accountants Australia and New Zealand has released its pre-budget submission, and is calling for:
- A solution to the looming increase in asset-less insolvencies expected to flood the Australian business landscape as government support is wound back.
- Provision of support to businesses impacted by COVID-19 in the form of vouchers to access professional advice in relation to their financial position, viability, and recovery prospects.
- Using recovery and stimulus measures to advance Australia’s progress towards sustainable development goals such as a zero emissions economy.
“While short-term GDP measures are typically used to benchmark Australia’s success as a nation, this should be broadened to focus on important societal values that can’t be measured using GDP including inequality, digital divide, social cohesion and environmental quality,” said Croker.
“CA ANZ is urging the Government to take this opportunity to look beyond short-term decision making and implement much needed structural change based on the long-term benefit to the nation.
“Now is the time to invest in sustainable solutions to policy challenges in climate change, education and aged care.
“[Yesterday] the Treasurer referred to red tape reduction, digital transformation and consideration being given to bringing forward already legislated personal tax cuts.
“If the Government is hoping to stimulate spending while simultaneously supporting those adversely impacted by the pandemic, then increasing Government payments such as JobSeeker may have a greater impact than reducing personal tax rates.
“Reducing red tape for small business through the better collection, sharing and use of data, will also have the dual impact of improving integrity and easing business compliance costs.
“However digital transformation of itself will not do the trick if built on rickety, complex foundations such as the current tax law.”
“Looking past next month’s Budget to the longer-term, consideration must also be given in the near future to economic structural reform in tax - including raising the rate and base of the GST.”
Access CA ANZ's 2020-21 pre-budget submission
CA ANZ outlines key initiatives to prioritiseRead more