Shortfall of 18k accountants, auditors expected by 2035

There could also be a deficit of 3,500 junior general accountants due to a shrinking domestic education pipeline and fewer new entrants.

The largest gap is expected among intermediate finance managers with a shortfall of 9,200 workers, caused by an ageing workforce, high attrition, and insufficient progression from junior roles into experienced senior positions.

The shortfall for senior taxation accountants was a more modest 760 workers, mainly because experienced tax practitioners may be ageing and moving into retirement.

While the accounting and auditing profession is expected to grow, shortages would be concentrated in the roles and experience levels that are critical to running businesses, markets, and tax systems, the report said.

The supply of professional accounting skills is failing to keep pace with demand in parts of the accounting profession, driven by pressures across the talent pipeline and workforce. The report pointed to five structural drivers shaping the future accounting workforce.

First, the education pipeline is shrinking, a trend that began before the COVID-19 pandemic and reflects ongoing weakness in domestic demand and unstable international student flows. Second, skilled migration, a key pathway for accounting talent supply and international students, is now more constrained and uncertain.

The third contributing factor, according to the report, is an ageing workforce and attrition, which will require proportionate replacement, particularly among experienced practitioners in tax accounting and financial management.

Rising regulatory complexity could boost demand for accounting expertise across the economy, particularly sustainability reporting and expanded financial compliance obligations. Finally, AI is likely to reshape accounting work, automating routine tasks while enabling higher-value strategic advice, professional judgement, and governance.

“If workforce shortages persist, the accounting profession may face constraints in meeting the growing needs of Australian businesses, government and the broader economy,” the report warned.

“A shortage of skilled general accountants, tax accountants, external auditors, and finance managers could place pressure on the timeliness and quality of financial reporting, governance, risk management and tax compliance. It may also limit the extent to which businesses can draw on financial expertise to support investment, productivity and adaptation to regulatory and technological change.”

CA ANZ chief executive Ainslie van Onselen said the report's findings emphasise both the profession’s contribution to the economy and the growing challenge of ensuring Australia has the financial expertise needed to support future economic growth.

"Accounting is one of the quiet foundations of Australia's economy,” van Onselen said.

"Every investment decision, every audited financial statement and every board that governs with confidence relies on the work of accounting professionals. That work is rarely the headline, but the economy would not function without it.”

Van Onselen said, however, that the predicted shortage of accountants and auditors is a challenge not only for the profession but a productivity and capability challenge for Australia.

Moreover, she said that while AI could change how accountants work, “it will not replace the need for trusted, professional, and human judgement”.

The report identified five complementary priorities to tackle the looming shortage and strengthen the long-term supply of accounting professionals to meet forecast demand by 2035.

It suggested strengthening the domestic talent pipeline, maintaining access to global talent, building future-ready skills (including arming students and workers with skills to adapt to rapid changes in AI as well as regulatory changes and assurance requirements), supporting workforce participation, and improving long-term workforce planning.

CA ANZ group executive advocacy, public and government affairs Damian Ogden said government, educators, employers and the profession need to take co-ordinated action.

“The shortage isn't about accountants for accounting's sake. It's about having enough people with the right skills to support business investment, financial confidence, and economic growth,” Ogden said.

“These shortages are not inevitable, but they will require action to strengthen the domestic talent pipeline, maintain access to global talent and ensure the profession has the skills needed for the future. The cost of inaction will ultimately be borne by the businesses, institutions and communities that rely on sound financial expertise.”

Accounting generates more than $82.4 billion in economic activity each year, equivalent to around 3 per cent of GDP, and supports more than 365,000 jobs, the research showed.