6 October 2020

The Institute of Public Accountants (IPA) has welcomed tonight’s Federal Budget recognising the need for earlier tax cuts and significant investment are needed to reboot the Australian economy in the road to recovery, but is still urging the Government to think holistic reform.

“We expected that the Budget would deliver business incentives, tax cuts and infrastructure investment to create jobs and assist businesses to climb out of the COVID-19 mire,” said IPA chief executive officer, Andrew Conway.

“And there is no doubt that thousands of Australians will benefit from earlier tax cuts which in turn will hopefully be realised at the cash registers of small businesses across Australia.

“Tax cuts will always be a true sweetener but there is no point having the sugar if we are not addressing the cavity that is left behind by ignoring the need for holistic tax reform.

“Australia must address the structural deficiencies that exist in the current tax system if it is to truly recover from the pandemic and head for a sustainable future.

“We recognise that it is not easy to just make tax changes without considering the broader impact on other aspects of the economy. The various elements are closely intertwined including the tax mix, personal services income, the plethora of inefficient state-based taxes such as payroll tax and stamp duty and other aspects of the economy including our regulatory framework.

“Holistic reform won’t come without controversy; however, it is essential if we are to unshackle the restrictions and realise the potential of the economy in a post-COVID-19 environment.

“If the pandemic has taught us just one thing, it is the need to work together. National Cabinet has shown what can be achieved but we need everyone on the same page when it comes to tackling genuine reform,” said Mr Conway.