Compiling the annual report is an ideal time to reflect on your past work and achievements, and set goals for the new financial year. Here’s a snapshot of what CA ANZ’s advocacy team has worked on over the past 12 months – and what our FY24 priorities will be.

Tax

Dealings with the Australian Taxation Office (ATO) included input on important draft guidance products impacting large private groups, and raising the concerns of members in public practice about the decline in ATO service standards.

In New Zealand, we worked closely with Inland Revenue (IR) to identify appropriate tax response measures following severe weather. CA ANZ also worked with IR on many public rulings. We made substantive written submissions on three bills, participated in reference groups, and appeared before parliamentary select committees in respect of the review of IR’s draft long term insights briefing draft legislation.

Superannuation and financial advice

CA ANZ sought changes to the self-managed superannuation fund non-arm’s length income rules applying to use of professional skills. We were one of the few voices expressing concern about the design and long-term impact of a 30% tax on the future earnings of superannuation balances above A$3 million.

CA ANZ also contributed to the Quality of Advice Review, arguing strongly for greater recognition of the role CAs should play in helping Australians access high quality, ethical and professional financial advice.

Monetary policy

In New Zealand, we called for more frequent inflation reporting – made more pressing as the public experienced significant increases in the cost of living.

Audit and assurance

CA ANZ engaged on major developments in audit standards, including outreach on going concern, evidence, fraud and sustainability assurance, and the local and international standards boards’ upcoming work programs and strategy. We also launched the world’s most comprehensive small-and-medium audit firm quality-management toolkit, to help practices adopt the new standards.

CA ANZ continued to advocate for a mandate on digital reporting in Australia and New Zealand, and momentum is building. With some of the biggest not-for-profit reporting reforms in a generation underway in Australia, and refinements in New Zealand, we have conducted extensive outreach with members and committees. Standards-setters have genuinely listened, with the proposals now in line with our advocacy for simplification and striking the right cost balance.

Climate-related disclosures and sustainability reporting

CA ANZ remained a strong advocate for high quality, globally consistent and comparable sustainability reporting standards. We convened a submission from 20 peak Australian bodies on the International Sustainability Standards Board exposure drafts, engaged with New Zealand’s External Reporting Board (XRB) on climate disclosure and assurance standards, and advocated in Australia with Treasury on the proposed mandatory climate-related disclosure framework. CA ANZ also announced it is the first Australian organisation to join the International Financial Reporting Standards (IFRS) Foundation’s Partnership Framework for capacity building.

Skills and workforce needs

CA ANZ was the only professional accounting body invited to the Australian Government’s Jobs and Skills Summit in September 2022. At the summit, we advocated successfully for an increase in permanent migration program places to help ease critical skills shortages, funding to resolve the skilled visa processing backlog, legislation to accelerate employer action towards closing the gender pay gap, and supporting parents’ workforce participation by making paid parental leave more accessible, fair and flexible.

In New Zealand, we continued to advocate for settings to address the gender pay gap, including introducing pay gap reporting for large employers. We also voiced concerns that the proposed income insurance scheme to protect workers and the economy lacked the detail required for an informed decision on its workability, arguing that taking the scheme off the table was the right approach.

CA ANZ’s migration advocacy resulted in significant outcomes for employers and members. In Australia, we advocated successfully for the majority of permanent migration program visas to remain allocated to the skill stream to address ongoing skills shortages, improved recognition of overseas qualifications and prior learning, and more funding for timely visa processing. In New Zealand, we advocated successfully to include auditors on the straight-to-residence Green List and achieved a business-friendly skilled migrant category.

Talent

To build the pipeline of talent entering our profession, CA ANZ contributed to the Australian Government’s higher education system review, advocating to reduce the cost of accounting degrees. We also advocated with federal, state and territory education bodies and ministers to strengthen the focus on financial literacy and accounting in high schools, sharing the high school marketing toolkit CA ANZ has developed to increase awareness of the attractiveness of a career in accounting. In New Zealand, we engaged with the Ministry of Education on the critical need to include a robust accounting and financial literacy component in the high school curriculum. We also advocated with tertiary institutions to maintain a strong commitment to commerce disciplines.

Anti-money laundering

CA ANZ continued its engagement with New Zealand’s Ministry of Justice and Department of Internal Affairs on anti-money laundering (AML) settings as part of the statutory review, and on operationalising the exemption for certain tax transfers by accounting practices. We also engaged with the attorney general’s department and the other professional accounting bodies in relation to accounting services being captured within Australia’s AML regime.

Looking ahead…

In FY24 CA ANZ will continue to advocate for the public good, in alignment with our policy priorities and guiding principles, and in accordance with the profession’s ethical standards.

Our advocacy focus areas will include:

• Increasing trust in tax, and trust in the integrity of the profession
• Addressing the ongoing accounting and auditor skills shortage through targeted education, skills and skilled migration policies
• High quality, consistent assurance – bringing integrity to sustainability reporting and supporting the audit profession to deliver
• Globally aligned, consistent and comparable sustainability disclosures, and an overarching sustainability reporting framework that integrates climate disclosures with other matters
• Alignment with existing AML obligations for professional accountants when the regime is extended to capture accounting services in Australia
• Engaging with the government formed after New Zealand’s general election to ensure ministers are abreast of the opportunities and challenges faced by our profession and cognisant of any specific law reform and policy setting changes needed
• Ongoing tax advocacy in Australia for ambitious tax reform, and in New Zealand for a reimagined, pared-back fringe benefit tax, a streamlined and systematic remedials process, and greater adherence to the generic tax policy process
• Creating a safe, inclusive and respectful workforce and profession, and strengthening First Nations participation, representation and leadership.

Simon Grant FCA

Simon Grant FCA is group executive, advocacy and international development at CA ANZ. He has 38 years’ experience in finance, accounting, banking and professional membership. He expanded from audit into banking, corporate finance and then managing members’ interests when he joined CA ANZ in 2002. Grant became a CA in 1987 and a fellow in 2004. He is a fellow of the Association of Chartered Certified Accountants, a graduate of the Australian Institute of Company Directors and completed the Asialink Business Leaders program in 2018.

Peter Vial FCA

Peter Vial FCA is group executive, New Zealand and the Pacific at CA ANZ. He worked in senior roles with both KPMG and PwC. He also studied and worked in Germany and the UK, including three years as New Zealand Trade Commissioner to Germany. Prior to joining CA ANZ in 2013, Vial was an associate professor in Commercial Law at Auckland University. He is an FCA, a chartered member of the New Zealand Institute of Directors, and a barrister and solicitor of the High Court of New Zealand.