Federal Budget needs to build confidence, not just surplus
The Government should take a long-term economic view in its efforts to return the budget to surplus amid major issues concerning market forces, household debt and uncertainty over job security, according to CPA Australia.
In its position statement on the upcoming Federal Budget announcement, CPA said there was no need for the Government to make hasty decisions to bring the national Budget back into the black, adding that such action could spell disaster for Australia's long-term competitiveness.
It said the Budget needed to be framed in terms of structural change and confidence-building, including an increase to GST and an end to inefficient taxes in order to increase the productivity and living standards of Australians.
In addition, the accounting body called for a realignment of tax expenditure towards such areas as education.
"A leading edge, internationally competitive tax system is an absolute must if Australia is to achieve the necessary productivity improvements, competitiveness and ultimately sustainable economic growth," CPA stated.
The submission said the 'Asian Century' needed to be the catalyst for the structural changes necessary to boost this productivity. The Government should reallocate expenditure towards the non-resources sectors and to delivering high-end skills and knowledge to the workforce.
In relation to new regulations governing financial planners who provide tax advice (the Tax Agents Services regime), CPA recommended that the Tax Practitioners Board be provided with appropriate funding so it can adequately communicate and implement issues to bring planners under the scope of the new requirements.
CPA added that the Australian Securities and Investments Commission be provided with appropriate funding so it could remain proactive within capital markets and ensure investor and industry confidence.
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