In its 2023-24 pre-budget submission, CPA Australia’s pre-budget submission includes recommendations for funding and changes in various areas, including migration, tax reform, support for non-profit organisations and small/medium businesses, climate change and emissions, and the economy.
The pre-budget submission also includes proposals for enhancing government consultation procedures. The migration-related recommendations aim to simplify the visa application process and offer support to skilled workers. The tax reform proposals concentrate on making the tax system simpler and reducing the tax burden on businesses.
The support for non-profit organisations and small/medium businesses encompasses measures to assist these entities in obtaining funding and resources. The climate change and emissions proposals concentrate on reducing carbon emissions and transitioning to renewable energy sources.
The economic proposals focus on creating jobs and boosting economic growth. The government consultation process proposals aim to improve communication and collaboration between the government and stakeholders.
CPA Australia also calls for the federal government to pass a law that would create a standard tax deduction for work-from-home expenses, similar to how workers are reimbursed for work-related travel mileage.
According to Gavan Ord, senior manager of business and investment policy at CPA Australia, the economy is expected to slow down in the coming year due to rising interest rates and a decline in business and consumer confidence.
He believes that the 2023-2024 budget should address these challenges by providing support for businesses to address risks, prepare for opportunities, and transition to renewable energy.
Ord also stated that small businesses should have support in this budget and called for a clear plan for the transition to renewable energy, support for businesses and charities, and early action on insolvencies. He emphasised that the budget should live up to expectations and provide well-rounded responses to the current economic challenges.
“The budget should address the anticipated rise in insolvencies by providing extra funds to ASIC for monitoring companies displaying warning signs of financial difficulties and raising awareness among directors of their responsibilities.
“The government should also launch a program that funds businesses and charities seeking professional advice and provides them with stability, regulatory clarity, and access to expert guidance.”
The need for more affordability for businesses and charities to seek advice is a concern and requires government support to enable them to consult with their trusted advisors.
“The cost of living continues to be a challenge, and the government’s efforts to shift to renewable energy will result in additional expenses, including potential “Greenflation” from the investment needed to meet emissions goals. The public and businesses need to be informed of the cost of the transition, including clear goals, targets, and metrics, through a publicly accessible renewable transition plan.
While action on climate change is supported, a plan is needed for businesses and workers in industries that will be affected by the transition to avoid leaving Australians behind, including potentially creating a “Rust Belt” region with high unemployment and neglected communities.
The budget should create a long-term fund to support small businesses and communities that may be impacted by the shift to renewables, as well as allocate funds for re-skilling and assisting workers affected by declining industries.
CPA Australia is Australia’s leading professional accounting body and one of the largest in the world. Find out more at cpaaustralia.com.au.
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