Login
Australia ‘long overdue’ for tax reform, lawyers say
“Clear and workable” legislation is critical if Australia’s taxation system is to be meaningfully reformed, according to BigLaw practitioners.
Jerome Doraisamy
Writing recently for Lawyers Weekly’s sister brand, Accountants Daily, Tony Greco – the general manager of technical policy at the Institute of Public Accountants – opined that younger generations will pay the price if the federal government fails to act on comprehensive tax reform.
Ongoing delays in the implementation of such reform, he wrote, “will continue hurting productivity, which has been in a slow decline in Australia due to policy inertia on other necessary reforms in many areas of our economy”.
Chartered Accountants ANZ, the peak member body for accountants Down Under, last week called for accessible financial advice, a money laundering crackdown, and measures to address the skills shortage, among other wish-list items from both major parties. However, Greco has argued, Labor and the Coalition “are hellbent on continuing to undertake piecemeal nips and tucks that add layers of extra complexity to already congested tax laws”.
Speaking to Lawyers Weekly, Bartier Perry partner and taxation group head Lisa To said that Australia is “long overdue” for “comprehensive” tax reform.
“The tax community has consistently urged the government, regardless of what party is in power, to prioritise holistic reforms to simplify the complexities and address fairness in the Australian tax system,” she said.
Corrs Chambers Westgarth head of tax controversy Angelina Lagana agreed, saying such reform “should be a key priority for any government”.
From a tax lawyer’s perspective, she said, “we need legislation that is clear and workable”.
“In my view, encouraging foreign investment and resolving legislative ambiguity should be the priority of any meaningful tax reform,” Lagana said.
Ultimately, Lagana suggested, tax reform should support long-term economic growth.
“Key focus areas for tax lawyers include greater clarity on policies relating to superannuation, renewable energy, and foreign investment, along with their tax implications. Additionally, with significant new tax measures recently introduced – such as pillar two, country-by-country reporting, and thin capitalisation rules – both tax lawyers and our clients need certainty on how these reforms will impact multinationals operating and investing in Australia,” she said.
To added: “Reducing tax on earned income would provide much-needed relief for younger Australians grappling with rising living costs and housing affordability. Rebalancing tax policies to favour home ownership over property investment is a critical step, as is introducing long-awaited legislation on individual tax residency – first announced in the 2021–22 federal budget – to offer certainty to non-residents visiting Australia by abandoning the proposed 45-day secondary test.”
“Establishing innovation-focused tax incentives is crucial to fostering business growth and productivity, alongside reducing corporate tax rates, or introducing targeted concessions to attract investment.”
These reforms, To stressed, are crucial to achieving intergenerational equity and keeping Australia competitive in the global economy.
Jerome Doraisamy
Jerome Doraisamy is the editor of Lawyers Weekly and HR Leader. He has worked at Momentum Media as a journalist on Lawyers Weekly since February 2018, and has served as editor since March 2022. In June 2024, he also assumed the editorship of HR Leader. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of the Minds Count Foundation.
You can email Jerome at:
