A peak accounting body has described the Federal Budget as a “tax grab” that kills aspiration and shifts the tax burden to middle Australia.
CPA Australia says the new settings will discourage investment, productivity and entrepreneurship and put a higher tax burden on small business and ordinary investors.
CPA Australia Tax Lead Jenny Wong said the government’s changes to capital gains tax (CGT) and investment settings would disproportionately impact mum-and-dad investors, small business owners and younger Australians trying to build wealth.
“This is not tax reform – it’s a revenue measure that shifts more of the burden onto middle Australia,” Ms Wong said.
“For anyone looking to invest, grow a business or take on risk, the message is clear – the government will take at least 30 per cent, regardless of the outcome.”
“That effectively creates a minimum tax on aspiration, and it sends the wrong signal at a time when Australia should be encouraging investment, not discouraging it.”
Ms Wong said the budget measures were a clear disincentive to invest and risked pushing capital and talent offshore at a time when global competition for investment and people was intensifying.
“Why would you build and grow a business here when other markets are more supportive of investment and innovation?” Ms Wong said.
“We risk losing not just capital, but our most ambitious and entrepreneurial talent.”
Ms Wong said the measures were not levelling the playing field.
“It’s tilting it even further in one direction,” she said. “Those with the resources to navigate complexity will adjust. Ordinary Australians will simply pay more.
“Intergenerational equity matters, but today’s proposed changes won’t deliver it, and go some way to making it worse.”
Peak health consumer body The Consumers Health Forum of Australia said the budget had some welcome measures but had fallen short in addressing the out-of-pocket costs “crushing” Australians trying to access essential health care.
CHF CEO Dr Elizabeth Deveny said: “You can see that the Government understands that someone’s health is shaped long before they walk into a clinic.”
“Health pressure starts outside the health system. Some of today’s announcements will help here. But for health, the real test is whether people can actually use the healthcare available to them in real life.”
The Older Persons Advocacy Network (OPAN) acknowledges the substantial $3.7 billion investment in supporting older Australians, including 5000 new residential aged care places a year over the next 4 years.
However, it said the budget fell critically short where older people needed help most – getting assessed and Support at Home.
“While the budget commits $389.8 million to Support at Home refinements, it is unclear what portion is being attributed to new allocated places,” OPAN said in a statement.
“The continuation of the 60 percent interim funding also risks older people cutting crucial services and not receiving the full care that they need.
“The $224.3 million investment in dementia care – expanding specialist units and the Hospital to Aged Care Dementia Support Program – is welcomed, though more needs to be done to support people living with dementia to remain in the community.”
OPAN Director Policy, Education and Systemic Advocacy Samantha Edmonds said the Budget was a missed opportunity to pursue meaningful reform.
“This is disappointing news for the sector and older people, especially since we have an ageing population, with more people projected to need government funded assistance going forward,” Ms Edmonds said.
“Older people deserve to be valued and treated with dignity and respect, and unfortunately this Budget still leaves much uncertainty.”
