CPA Australia backs Board of Taxation review into red tape

Australia’s largest accounting body, CPA Australia, has welcomed Treasurer Jim Chalmers’ announcement that the Board of Taxation is being tasked with identifying ways to reduce compliance burdens and red tape in the business tax system as part of its commitment to boost productivity and stimulate economic growth.

CPA Australia has outlined its top three compliance issues that it believes will require fixing as part of the government’s productivity reforms, which have been determined in collaboration with senior members. They are: 

• Simplify BAS reporting and expand simplified trading stock rules
• Introduce a simplified FBT regime for small business
• Fix technical legislative GST provisions that are unworkable for taxpayers, tax agents and the ATO

CPA Australia’s Tax Lead, Jenny Wong, is urging the Board of Taxation to prioritise practical reforms that will deliver immediate benefits for small businesses. 

“Simplifying BAS reporting and expanding simplified trading stock rules are some steps that would cut compliance costs and free up business owners to focus on running their business,” she said.

“The complexity of Australia’s fringe benefits tax regime is another area ripe for reform. Small businesses should not face the same compliance load as large corporates, yet many currently spend more on FBT record-keeping than on their actual liability. We encourage the government to follow the New Zealand example and consult on a review of FBT to make it less complex and more targeted.

“This review also provides an opportunity to fix longstanding technical flaws in GST law that have frustrated businesses and advisers for decades. Addressing unworkable provisions is not tax reform, it is simply making the law function as intended. 

“Cutting tax red tape must mean simplifying what’s broken, not adding new layers of complexity.”

Ms Wong added her congratulations to Andrew Mills on his appointment as acting Chair of the Board of Taxation for a three-month period effective 1 October 2025. 

Ms Wong also welcomed news that the Productivity Commission is set to begin its scheduled five-year review of GST distribution, but says that decisions about state distribution should not distract from broader tax reform priorities.  

“Reform of the GST is central to resolving the structural weaknesses in Australia’s tax system,” she said. “Most tax specialists believe that increasing the GST is the key to broadening the overall tax base and reducing the reliance on personal income tax, which would put more money in people’s pockets and ultimately generate more revenue to help drive economic growth.

“It’s crucial that the inevitable wrangling between the states about how the GST is carved up does not distract from these broader objectives.”

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