The US Congress recently pushed through President Donald Trump’s tax bill, bringing the corporate tax rate from 35 per cent down to 21 per cent.
Tricor ChewandDormers director Tony Dormer says accountants need to keep abreast of developments outside the accounting world to better serve their clients in the future.
“Accountants need to understand geopolitical changes. Accountants have to step up and help their clients with the effect on their businesses of those sorts of geopolitical issues,” said Mr Dormer.
“Will the Labor government be appointed and what effects will that have on corporate tax rate, for example, so those things are very much in line for 2018.”
Mr Dormer further believes that with the US corporate tax rate tumbling down and the UK main rate at 19 per cent, and at 18 per cent for 2020, Australia will have to do more to keep up with its global counterparts.
“The new corporate tax rate is a good one but of course it needs to come down further following the American rate coming down,” said Mr Dormer.
“I think with both the UK and the US coming down to the 20 per cent mark, then ultimately 20 per cent should be the goal [for Australia].
“We have to do the same but I think that comes with a lowering of tax rates for individuals as well. In the mid space more than anywhere else the top rate could come down to 40 per cent, but of course we've got to be able to afford all of that.”
Jotham Lian is the editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.