Australia’s largest accounting body has thrown qualified support behind Treasurer Jim Chalmers’ productivity reform agenda, but warns the government cannot afford to delay comprehensive tax overhaul while pursuing regulatory quick-wins.
What’s happening: CPA Australia’s leadership has endorsed the direction from Chalmers’ recent economic reform roundtable, particularly welcoming “tell us once” compliance reforms and regulatory reduction measures as immediate priorities.
Why this matters: With Australia’s productivity growth stagnating, business leaders are pushing for urgent action on the regulatory burden that’s constraining growth, while arguing broader tax system reform cannot be sidelined.
Quick wins prioritised
CPA Australia Chief Executive Officer Chris Freeland AM says the organisation is “especially pleased” that their recommendation for ‘tell us once’ reform has been recognised as a quick-win measure.
“Requiring individuals and businesses to repeatedly provide the same information to government is a clear example of the inefficiencies holding back productivity,” Freeland said. “Addressing this sends a strong signal that the government is listening and acting on business concerns.”
The regulatory burden facing SMEs has become a critical issue, with CPA Australia consistently advocating for streamlined compliance processes that reduce administrative costs for businesses.
Freeland also welcomed Dr Chalmers’ commitment to adopt proposals to cut unnecessary regulation, including those identified by the Productivity Commission, and called for the government to finalise its national AI capability plan.
Tax reform urgency
Despite the focus on immediate wins, Freeland emphasised that comprehensive tax reform must remain a priority and cannot be constrained by short-term political considerations.
“Tax reform cannot be delayed, nor should the scope be hamstrung by short-term considerations,” he said. “All taxes need to be considered with a view to ensuring that our tax system helps to encourage investment, boosts productivity and drive economic growth.”
CPA Australia advocates for reducing Australia’s over-reliance on personal and business taxes, including what Freeland describes as “meaningful GST reform.”
Compliance burden targeted
The ‘tell us once’ initiative addresses a fundamental inefficiency where businesses must provide identical information to multiple government agencies, creating unnecessary administrative overhead that diverts resources from productive activities.
While supporting most immediate measures, Freeland urged caution on the proposed road-user charge, calling for comprehensive impact assessment.
“As fuel excise revenue declines with the rise of electric vehicles, a road user charge appears logical,” he said. “But it must be applied with a clear understanding of its net impact on revenue and consumer behaviour.”
Cautious road ahead
Despite the positive reception, Freeland acknowledged the challenges ahead in implementing meaningful reform.
“There is cautious optimism in the air, but the road to reform is rarely straightforward,” he said. “The need to boost productivity is clearly urgent, but we must be prepared for challenges along the way. What matters now is turning intent into action, swiftly and thoughtfully, without unintended consequences.”
The accounting body’s response reflects broader business sentiment around government reform initiatives, supporting deregulation and efficiency measures while maintaining pressure for comprehensive tax system overhaul that goes beyond incremental changes.
More at cpaaustralia.com.au
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