Let’s hope the next budget is not just a buffet of sweeteners says BDO tax team
Let’s hope the next budget is not just a buffet of sweeteners says BDO tax team
The Mid Year Economic and Fiscal Outlook (MYEFO) update, delivered today, highlights Australia’s resilience to significant economic challenges but still no relief for businesses working under an out of date tax system, according to tax experts at accounting and advisory firm, BDO in Australia.
BDO national tax technical leader, Lance Cunningham commented:
“As expected, the proximity of the next election has ruled out any major tax announcements in today’s Mid-Year Economic and Fiscal Outlook (MYEFO) by Treasurer Josh Frydenberg,” commented Mr Cunningham.
“The Government’s tax-reform-free stance seems to be continuing without any light at the end of the tunnel and it is disappointing that we’ve not seen any new announcements for business in today’s MYEFO particularly around tax reform.
“BDO calls for tax reform to be placed firmly on the agenda ahead of the next budget and election in 2022 to make the tax system in Australia fit for purpose. Business is looking to governments to take action on this, as the current 20th century tax system is too cumbersome and not fit for the third decade of the 21st century.
“It is encouraging that today’s update shows that Australia has a positive outlook and stronger economy than many thought we might have especially after Delta and now Omicron and this clearly demonstrates the resilience of the Australian economy; but we’re really struggling with an out of date tax system.
“Let’s hope that the next budget (29 March 2022) which is expected to be held prior to the next election is not just a buffet of sweeteners but that it is actually used as an opportunity to propose some meaningful tax reform initiatives.”