Chartered Accountants ANZ (CA ANZ) is urging the attendees of this week's Economic Reform Roundtable at Parliament House to place collaboration and leadership front of mind to ensure opportunities that put Australia on the path to a stronger, fairer economic future are not missed.
CA ANZ CEO Ainslie van Onselen says there is a real opportunity to achieve consensus on a long-term plan to address tax reform.
"We've long held the view that Australia's tax architecture is overdue for renovation," said Ms van Onselen.
"CA ANZ has advocated for a system that encourages rather than hinders investment in Australia, rewards innovation and supports sustainable growth.
"This week's discussion is an opportunity to work together to deliver impactful reform. We need a tax system that powers productivity, not one that penalises progress – be it individuals or business, and we strongly encourage those sitting around the table in Canberra to put the nation first.
"Our recommendations of simplifying fringe benefits tax, reducing industry levies, and harmonising state taxes such as land tax and payroll tax, would go a long way to reducing red tape and we're ready to support the government on a way forward.
"Tax reform, aside, there are other productivity boosting measures that should also be on the agenda across the next few days."
These include:
- Mandatory Digital Reporting
On top of CA ANZ's wish list is mandatory digital reporting – a critical reform which could deliver billions of dollars in net productivity gains.
"The Productivity Commission recommended mandatory digital reporting for disclosing entities just this month so progressing this key reform at the Roundtable this week is the logical step forward," said Ms van Onselen.
"This reform will unlock productivity, improve accessibility to our capital markets, and bring Australia in line with global best practice.
"Australian companies are still stuck using PDFs and hard copy papers, while the world's largest economies are already mandating or phasing in digital financial reporting.
"This is a negligible outlay for potentially billions in investment and productivity, which is a no brainer."
- Implementing a road user charge
Introducing a road user charge would create a fairer, more sustainable way to fund Australia's road network.
"As vehicles become more fuel-efficient and electric vehicles grow in popularity, relying on fuel taxes to cover road maintenance costs is no longer viable. A modern road user charging system ensures that everyone who uses the roads contributes to their upkeep, regardless of what powers their vehicle," said Ms van Onselen.
"Australia's current road user charging is due for a 21st-century upgrade. With tolls, registration fees, licence charges, fuel taxes, and luxury car levies all in play, the current patchwork of charges is complex and outdated. Streamlining these systems would simplify the experience for drivers and better reflect today's technology-driven transport landscape."
- Make ASIC searches free to clamp down on money laundering
CA ANZ has long argued for the removal of fees associated with company checks when accessing information on the Australian Securities and Investments Commission (ASIC) registers.
The introduction of approximately 80,000 professional service providers and real estate entities to the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Regime is estimated to cost $13.9 billion over 10 years. This will include those entities accessing company registers to identify and verify companies, directors and office holders.
"Many businesses have to obtain information from ASIC registers to fulfill their statutory obligations, and this disproportionately impacts small businesses, including those who will be obliged to undertake identity verification checks required under the AML/CTF Regime," said Ms van Onselen.
"We recommend the Corporations (Fees) Act 2001 be amended to remove all fees associated with searching ASIC registers."
CA ANZ is also part of the coalition of nearly 30 groups representing small, medium and large businesses, universities, farmers, pharmacies and the investment community, led by the Business Council of Australia (BCA), that delivered a joint submission to the Economic Reform Roundtable.
