CPA Australia welcomes quick-win opportunities as productivity reform journey begins

Australia’s largest accounting body, CPA Australia, has broadly welcomed the direction and short-term actions that emerged from Treasurer Jim Chalmers’ economic reform roundtable and urges stakeholders to maintain a collaborative spirit as the hard work of reform begins.

CPA Australia’s Chief Executive Officer, Chris Freeland AM, says further details on the short-term actions are needed but the direction of travel from the roundtable is encouraging.

“There is cautious optimism in the air, but the road to reform is rarely straightforward,” he said. “The need to boost productivity is clearly urgent, but we must be prepared for challenges along the way. What matters now is turning intent into action, swiftly and thoughtfully, without unintended consequences.

“However, tax reform cannot be delayed, nor should the scope be hamstrung by short-term considerations. All taxes need to be considered with a view to ensuring that our tax system helps to encourage investment, boosts productivity and drive economic growth.” 

Of the short-term actions announced, Mr Freeland urges the government to prioritise reforms that will deliver immediate and meaningful productivity gains for business, particularly the commitment to reduce excessive regulation.

“We are especially pleased that our recommendation for ‘tell us once’ reform to cut unnecessary compliance burdens has been recognised as a quick-win measure,” he said. 

“Requiring individuals and businesses to repeatedly provide the same information to government is a clear example of the inefficiencies holding back productivity. Addressing this sends a strong signal that the government is listening and acting on business concerns.”

Mr Freeland also welcomes Dr Chalmers’ commitment to adopt proposals to cut unnecessary regulation, including those identified by the Productivity Commission.

In addition, Mr Freeland called on the government to finalise its national AI capability plan and support small businesses in adopting emerging technologies as soon as possible.

While some of the measures identified for immediate action can be quickly progressed, Mr Freeland emphasises the need for a comprehensive impact assessment of the proposed road-user charge.

He said: “As fuel excise revenue declines with the rise of electric vehicles, a road user charge appears logical. But it must be applied with a clear understanding of its net impact on revenue and consumer behaviour.”

Regarding the longer-term reform priorities identified from the roundtable, Mr Freeland said CPA Australia is particularly eager to see progress on tax reform.

“Tax reform should be a crucial component of the productivity reform agenda to help encourage investment and drive economic growth,” he said. 

“Australia needs a comprehensive plan to reduce over-reliance on personal and business taxes, including meaningful GST reform.

“We’re encouraged by the roundtable’s outcomes and look forward to working with the government to turn good ideas into lasting change.”

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