Tax

CA ANZ successfully advocated in New Zealand for a two-tier trustee tax rate structure to resolve taxation overreach, and a simplified property bright-line test and main home exclusion. We continue to support a sustainable tax base – including a reimagined and simplified FBT regime – to reduce compliance costs for taxpayers.

Ahead of the budget, CA ANZ advocated for adjusting marginal tax rates to mitigate the effects of fiscal drag, and we were pleased to see tax relief measures benefiting low- and middle-income earners.

In Australia, the government’s proposals to regulate the tax profession are CA ANZ’s first priority. CA ANZ has been actively engaging with Treasury, the Tax Practitioners Board (TPB) and politicians to influence the scope and administration of these reforms. We are also working with the ATO to improve its service delivery and reduce the admin burden on tax agents.

Ahead of the budget, CA ANZ advocated for substantive tax reform to relieve reliance on personal income tax collection and address intergenerational equity. We successfully advocated for extending the instant asset write-off to support small businesses and called for the government to legislate this as a matter of urgency.

Internationally, CA ANZ influenced the scope of multinational tax integrity reforms, such as changes to thin capitalisation and new public country-by-country reporting rules.

Superannuation and financial advice

CA ANZ objected to the Australian Government’s proposed additional tax measure on super account balances of at least A$3 million. We also continued our advocacy to remove the unintended and unfair outcomes from non-arm’s length income/expenses in superannuation funds and related amendments.

CA ANZ participated in the Quality of Advice Review and resultant legislation, and in the Australian Law Reform Commission’s inquiry into reforming and simplifying financial services laws. We also advocated on Treasury’s review of managed investment schemes, and on the ATO’s draft determination on the tax deductibility of financial advice fees.

Audit and assurance

In New Zealand, CA ANZ undertook research focused on auditor liability. We also continued to advocate for the adoption of an audit standard for less complex entities. In Australia, CA ANZ participated in Treasury’s consultation on the regulation of accounting, auditing and consulting firms, as well as engaging in other commonwealth and state parliamentary inquiries.

The Australian Government was asked by CA ANZ to clarify its intended roles for government and professional regulation of audit. We also called out the impact the audit requirements in the climate reporting bill will have on Group 3 entities that publish a statement of no material climate-related risks and opportunities, and their auditors. Our advocacy over multiple years played an important role in achieving reciprocal arrangements with the UK for the mutual recognition of auditors in Australia and New Zealand.

Financial reporting

CA ANZ engaged with the Australian Accounting Standards Board (AASB) as the new Tier 3 reporting framework for not-for-profits and charities was developed. This year there were also several major international accounting standards consultations on financial instruments, business combinations and revenue.

CA ANZ called out the lack of consultation on the proposed amalgamation of the AASB, Auditing and Assurance Standards Board (AUASB) and the Financial Reporting Council into a single entity, and weighed in on key factors for a successful, independent, multi-stakeholder standards-setting framework. We also kept advocating for digital reporting.

In New Zealand, CA ANZ engaged with stakeholders and members regarding changes to reporting thresholds.

Skills, workforce and migration

In New Zealand, CA ANZ continued to monitor the implementation of the Straight to Residence Green List pathway for auditors, the Skilled Migrant Category Resident Visa and the Accredited Employer Work Visa, which are of real value to the employers of our members.

In Australia, CA ANZ’s perseverance in tackling the profession’s skill shortages resulted in the inclusion of auditors and tax accountants on the 2023 Skills Priority List, review of the points test for migration, and improved recognition of overseas qualifications and prior learning. In addition, we advocated for inclusion of accountants and auditors on the 2024 Skills Priority List, and on the Core Skills Occupations List for skilled visas. We also continued to advocate for targeted investment in accounting, financial literacy, sustainability, and digital and AI skills.

Education

In New Zealand, CA ANZ continued raising awareness with the Ministry of Education (te Tāhuhu o te Mātauranga) about declining enrolments in accounting and commerce degrees, and advocating for the inclusion of accounting in the high school curriculum.

CA ANZ successfully advocated for higher education reform in Australia, including student debt relief, improving the way the Higher Education Loan Program is calculated, and introducing demand-driven and needs-based funding. We opposed international student caps, which will exacerbate the accountant shortage, and advocated with state and territory education ministers on strengthening accounting and financial literacy in high schools.

Sustainability reporting

CA ANZ advocated for right sizing and international alignment of the climate-related disclosure regime in Australia. We also supported implementation of climate-related disclosures in New Zealand, including consultations on regulations and guidance. CA ANZ convened a response from 15 bodies to the International Sustainability Standards Board’s (ISSB) future work plan consultation, highlighting the importance of adopting IFRS S1 and S2 first.

We also became the first ANZ-based ISSB capacity-building partner. Our response to Australia’s sustainable finance strategy emphasised the importance of a holistic, globally aligned approach to sustainability reporting. CA ANZ also advocated for a level playing field, and high-quality technical and ethical standards for the assurance of sustainability reports and roles of accountants.

Anti-money laundering

CA ANZ CEO Ainslie van Onselen engaged with Attorney-General Mark Dreyfus on the design of the anti-money laundering (AML) regime for accountants in Australia, to recognise members’ existing statutory and professional obligations.

In New Zealand, we continue to monitor the impact of the AML regime on our members and engage with government as it works through the recommendations from the statutory review.

Shaping the future…

In FY25, our advocacy focus areas will include:

• Engaging with parliamentary inquiries, Treasury and the TPB on reviews relating to tax, audit and accounting in Australia
• An effective, efficient tax system in New Zealand, including simplification of the FBT and reduced tax compliance costs
• Recognition of members’ current obligations under the expected ‘tranche two’ AML and counter-terrorism financing legislation in Australia, which will include accountants
• Alignment of local sustainability and reporting and assurance frameworks with global standards
• Super system simplification, better targeted super tax concessions and lifetime caps
• Reducing complexity and regulatory costs to increase access to affordable, quality financial advice
• Audit and assurance: ensuring policy and standards fit for SMEs and bigger businesses, and addressing non-financial risks such as climate change
• Accounting and audit talent shortages, attractiveness of the profession, education, skills and migration.

For more details go to: caanz.com/PP24

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FY24 in numbers 2024

CA ANZ advocacy

• CA ANZ lodged 214 submissions (FY23: 214)

• CA ANZ attended more than 400 government and ministerial meetings and roundtables (FY23: >300)

• CA ANZ made 11 parliamentary committee appearances (FY23: 5)

CA ANZ survey

• 70% of CA ANZ members say advocacy on key policy issues is influential (FY23: 70%)

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