CA ANZ calls on political leaders to face up to tax reform
Chartered Accountants Australia and New Zealand (CA ANZ) has called on both sides of politics to face up to tax reform and engage with the Australian community in the lead-up to the federal election.
In Brief
- CA ANZ is calling for politicians to be more forthcoming on tax reform stances in the lead up to the election.
- Tax Leader Michael Croker says Australians aren’t blind to debt and deficit challenges.
- Other industry leaders are echoing the call for tough decisions to be made around GST and tax concessions.
Chartered Accountants Australia and New Zealand (CA ANZ) has called on both sides of politics to face up to tax reform and engage with the Australian community in the lead-up to the federal election.
Michael Croker CA, Tax Leader at CA ANZ, cites the understanding and expectations of the Australian public as reasons to act now.
“Neither side of politics seems currently willing to address the elephant in the room, but Australians aren’t blind to the debt and deficit challenge facing whoever wins government,” Croker says.
Industry leaders across the country are also speaking up about the ongoing issues and lack of planning around the issue. Economist Dr Ken Henry and Reserve Bank board member Alison Watkins FCA have commented that Australia’s tax system is ‘not fit for purpose’.
It’s time for difficult conversations
Croker is calling on Australian politicians to start having difficult conversations and reach a solution, as a “failure to have a plan has the potential to further erode confidence in the political process,” he says.
A sustainable tax system is becoming increasingly important in a post-pandemic economy. Critical services including aged care, education and public health require urgent support, which is something voters will consider during the lead up to election day.
“Chartered Accountants ANZ is urging the major parties to at least outline to voters their plans for a tax reform review,” says Croker. “Surprise, ad hoc tax changes announced post-election won’t go down well, not with so many urging our politicians to talk straight during the election campaign.”
“Surprise, ad hoc tax changes announced post-election won’t go down well, not with so many urging our politicians to talk straight during the election campaign.”
What’s in the pre-budget submission
In its pre-budget submission, CA ANZ outlined reform topics that need to be addressed including:
- Increases to the rate and base of GST;
- How to improve cooperation between commonwealth and state governments;
- and whether the current tax concessions remain fit for purpose.
“There’s been plenty of intensive reviews done in the past by various governments – many of the key tax issues are known and understood,” says Croker, adding the government had commissioned a number of tax reviews over the years, but very little had been done with the recommendations.
