Chartered Accountants Australia and New Zealand (CA ANZ) has welcomed the announcement of two new tax cuts for Australian taxpayers as part of cost-of-living measures in the Federal Government’s 2025-26 Budget, but warned it’s a “temporary fix”.
Australia’s peak accounting body, in its press statement, called for a “meaningful discussion” about the nation’s taxation system.
CA ANZ Tax superannuation and financial services leader Susan Franks said: “Australia relies heavily on personal income tax collections to prop up the nation’s revenue and hard-working Australians deserve the two additional tax cuts coming their way, as they continue to face cost-of-living pressures.”
As the federal election nears, CA ANZ emphasised this concern in its pre-budget submission and is “pleased” that the Federal Government has taken it into account.
Franks added: “We agree with the Treasurer – Australians should keep more of what they earn and two additional tax cuts for Australian taxpayers is an important step in the right direction.
“There is still a lot of work to be done to address bracket creep and improve equity in the tax system, especially for future generations.
“As we head to the polls, we again urge both major parties to commit to a roadmap for tax reform.”
CA ANZ stated that it recognises the Federal Budget’s announcement to “strengthen” the sanctions available to the Tax Practitioners Board (TPB), update the tax practitioner registration framework, and allocate funding to the TPB to enforce these reforms and enhance compliance efforts targeting higher-risk practitioners starting 1 July 2025.
“We support the proposition that the TPB should have a robust sanctions regime to deter misconduct and impose appropriate penalties proportionate to the level of wrongdoing, but it has to be flexible so as to allow for the consideration of a tax practitioner’s circumstances and include a fair process,” Franks said.
CA ANZ further noted that while it is “pleased” the government has explicitly acknowledged support for small businesses in the Federal Budget, it also sees this as a “missed opportunity.”
Franks added: “CA ANZ calls upon the government to make the instant asset write-off permanent and the threshold consistent, to reduce red tape for both business, government and tax agents.
“There are also numerous announced but unenacted measures impacting small businesses and tax agents across Australia that continue to impose unnecessary uncertainty and pressure.”
CA ANZ highlighted that more than A$200m ($125.97m) has been dedicated to strengthening Australia’s business registers and implementing targeted improvements, including integrating Director Identification Numbers with the Company Register.
However, CA ANZ sustainability and business reform leader Karen McWilliams pointed out that the government had previously paused the register modernisation due to cost concerns.
CA ANZ said it remains “concerned” about the absence of superannuation reform in the Budget. The organisation continues to advocate for replacing annual superannuation contribution caps with lifetime caps and ensuring all Australians have access to financial advice by permitting qualified accountants to provide it.
CA ANZ superannuation and financial services leader Tony Negline said: “CA ANZ also remains staunchly opposed to the Government’s changes to superannuation that will see people with more than A$3m in total superannuation assets slugged with an additional 15% tax, and we’re urging the Senate to reject the Bill if it comes up for debate this sitting week.”
CA ANZ also said it is “disappointed” that the government did not make a specific funding allocation to the Australian Taxation Office so that it could develop appropriate reporting to all employers to help them comply with the payday super reforms that will commence on 1 July 2026.
Holden also pointed out the economic growth projections outlined in the budget, which forecast a 1.5% increase in 2024-25, followed by 2.25% in 2025-26 and 2.5% in 2026-27.
