‘Be realistic’: CA ANZ doubles down on tax reform, talent shortage calls

Chief executive Ainslie van Onselen said the body used its pre-budget submission to urge the federal government to address the declining pipeline of critical accounting skills and talent, as they were “a key risk to Australia’s productivity”. 

“Chartered Accountants play a critical role in the stability of local and global economies, as well as financial markets, which are core to national productivity,” she said. 

“Addressing the accountant shortage presents a real opportunity to strengthen our ability to meet the evolving needs of businesses, economies and capital markets.” 

According to the submission, Australia faces an estimated shortfall of around 6,000 accountants by 2030, while demand for accountants, auditors and finance roles has been forecast to rise to approximately 28,000 by 2029.

To solve this, the professional body called for these professions to remain on Australia’s Occupation Shortage list, which it deemed crucial to facilitate employers continuing to sponsor skilled workers on temporary visas to fill genuine domestic talent gaps.

The submission added between 2020 and 2026, annual Commonwealth contributions to accounting study had almost halved, dropping by $882, while maximum student contributions had almost doubled, increasing by $6,244.

“Making accounting study costs fairer and more affordable will reduce student debt, increase access to accounting careers and better support skills and workforce needs.”

In addition to the skills shortage, CA ANZ backed in its call for tax reform once again and said, “... streamlining regulation to ensure that policy objectives were met in an efficient manner could help improve productivity by reducing compliance costs, provisioning certainty and making investment easier”. 

The body noted these ideas involved small policy decisions as well as administrative changes, yet believed difficult tax reform involving big policy decisions was still needed. 

The body said Australia needed to reduce its heavy reliance on personal income tax collections, ensure the revenue base was sustainable, improve intergenerational inequality and modernise laws to make them more agile for the digital and gig economy age.

Damian Ogden, CA ANZ group executive of advocacy, government and public affairs, said streamlining regulatory requirements and ensuring that regulatory systems and processes were modern and efficient could significantly reduce regulatory burden for private groups and government sectors.

“Budgets are about decisions and the Treasurer will be making his at a time when the nation’s finances are under significant pressure,” Ogden said.  

“CA ANZ is acutely aware of the current fiscal constraints that will factor into decision making. This is why we are calling for a greater focus on proposals that drive productivity and build a skilled workforce, while modernising our tax system for the benefit of every Australian.”

“Boosting productivity through Australia’s tax system demands both practical reforms and bold policy choices. We urge the government to cut red tape and deliver greater certainty by implementing previously announced measures and setting realistic legislative timelines.”