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Release the report and cut Australia’s $60 billion tax red tape burden
- CPA Australia calls on the government to release the Board of Taxation’s Red Tape Reduction Review
- Tax compliance costs Australians around $60 billion a year, with small and medium businesses carrying the heaviest burden
- Government urged to set a 10 per cent reduction target and deliver practical reforms in the next Federal Budget
Australia’s largest professional accounting body, CPA Australia, is calling on the Federal Government to release the Board of Taxation’s Red Tape Reduction Review and commit to measurable action to reduce the cost and complexity of the tax system.
The review was delivered to the government in June 2026 following consultation with more than 100 stakeholders and 52 submissions, but its findings and recommendations have not yet been made public.
CPA Australia estimates that complying with Australia’s tax system costs taxpayers around $60 billion a year, equivalent to around two per cent of GDP. Small and medium businesses carry around $31 billion of that burden.
CPA Australia Tax Lead Jenny Wong said reducing tax red tape was one of the clearest productivity opportunities available to government.
“Tax compliance is costing Australia around $60 billion a year. That is not a tax bill. It is the cost of navigating the system,” Ms Wong said.
“Every hour a business spends filling in forms or repeatedly reporting the same information is an hour not spent serving customers, creating jobs and lifting productivity.
“Tax red tape has become a hidden tax on productivity, and small and medium businesses are paying the highest price.”
Ms Wong said achieving the government's objective of delivering "substantial, material and measurable" reductions in red tape would require greater transparency and accountability.
"We support the government's ambition and want it to succeed," Ms Wong said.
“But substantial, material and measurable reductions require a credible baseline, a clear target and a published plan.
“Publishing the Board of Taxation's review would establish that foundation and allow a genuine national effort to reduce the cost of tax compliance."
CPA Australia is calling on the government to:
- Publish the Board of Taxation’s Red Tape Reduction Review
- Set a measurable target to cut tax compliance costs by 10 per cent, equivalent to around $6 billion a year, by 2030
- Deliver low-cost quick wins in the next Federal Budget, beginning with fringe benefits tax and duplicated tax reporting
Ms Wong said the government could not credibly demonstrate progress without contemporary and transparent measurement.
“You cannot cut what you do not measure,” Ms Wong said.
“The last official estimate of tax compliance costs is 14 years old, and the methodology behind it was never published.
“The Board of Taxation has done the work. Businesses, tax practitioners and the wider community deserve to see its findings and recommendations.
“Publishing the report would also enable an informed discussion about which reforms should be prioritised.”
CPA Australia’s analysis estimates that taxpayers spend about $13 complying with the tax system for every dollar governments spend administering it. Compliance costs are equivalent to around seven per cent of all Commonwealth and state tax revenue.
The burden falls disproportionately on smaller businesses. CPA Australia estimates small and medium businesses incur around $31 billion in annual compliance costs, equivalent to 1.1 per cent of GDP.
“The smallest businesses carry the heaviest compliance burden,” Ms Wong said.
“Large corporations can spread compliance work across specialist teams. For a small business, the owner is often doing it themselves, taking time away from customers, staff and the day-to-day running of the business.
“Reducing duplication is an obvious place to begin. Businesses should provide information once, not repeatedly to different parts of government.”
CPA Australia has identified immediate reforms including simplifying fringe benefits tax, using Single Touch Payroll data to reduce duplicated reporting, indexing outdated compliance-saving thresholds, cut duplicated business tax reporting and improving digital interactions with the Australian Taxation Office.
“Cutting tax red tape should not be controversial,” Ms Wong said.
“There are practical reforms available now that would save businesses time without increasing taxes or reducing government services.
“A ‘report once, use many times’ approach would reduce duplicated payroll and tax reporting, while long-overdue changes to fringe benefits tax would remove a disproportionate burden on employers.”
“Tax reform is not only about how much people pay. It is also about what it costs them to comply. If Australia wants higher productivity, stronger businesses and more investment, reducing tax compliance costs must become a national priority.”
Media contact
Camille Hanton
External Affairs Lead
[email protected]
0431 180 475