Leading accountant’s body, CPA Australia, has criticised the Federal Budget, warning proposed tax changes could place additional strain on small businesses already battling rising operating costs and economic uncertainty.
CPA Australia tax lead Jenny Wong described the Budget as a “tax grab” rather than genuine reform, arguing the measures would discourage investment and reduce business confidence.
“For small business operators – particularly those using trust structures – this means higher effective tax rates and less flexibility,” Wong said.
CPA Australia said the changes to capital gains tax and investment settings risk creating a disincentive for Australians looking to grow businesses, invest in expansion or back innovation-driven enterprises.
The organisation warned that productivity growth relies heavily on business investment, particularly in start-ups and expanding companies, but argued the Budget measures send the wrong signal to entrepreneurs willing to take financial risks.
Wong said many small businesses are already operating under significant pressure from rising expenses and ongoing uncertainty, with the Budget failing to improve confidence or encourage future investment.
CPA Australia also expressed concern about the increasing complexity of the tax system, arguing it would favour larger or wealthier investors with access to specialist tax advice while making life harder for ordinary small business operators.
The accounting body said the Budget represented a missed opportunity to deliver meaningful long-term reform that could support productivity, simplify compliance and strengthen Australia’s competitiveness.
Despite its criticism, CPA Australia acknowledged some positive measures in the government’s productivity package, including efforts to reduce red tape and streamline government services through “tell-us once” reforms.