Accounting bodies must continue ‘loud approach’ on policy development: Julie Bishop
Former minister Julie Bishop said tax reform will only be improved at the government level when there is greater public consultation and involvement from tax practitioners.
Bishop said tax practitioners should consistently drive the tax reform debate with the government during her keynote appearance at the Tax Institute Summit on Friday.
During the session, Bishop was asked about her stance towards government, the upcoming election, what this means for the tax industry, and if there is a future for the conversation surrounding tax reform.
Bishop said the government, tax practitioners, and the Australian public should always be having a tax reform conversation.
“I think it is very much up to tax practitioners to help drive that debate,” she said.
“I think the best outcomes are when the practitioners are involved in policy development early on.”
To avoid being ‘blindsided’ by potential tax legislation and proposals, tax practitioners and tax advocates need to be in the policy conversations right from the “get-go”.
Following recent parliamentary reform heavily focused on the tax industry, Bishop said accounting bodies should continue their public and “loud” approach to communicating their concerns.
The Tax Institute and industry groups should have a “first look”, a more central and prominent role in the policy debate and conversations to avoid significant distress.
“The tax industry’s groups and individuals should be deeply involved in the policy development debate about how to have an impact on the next budget,” Bishop said.
“That means putting together a case, an evidence-based case, with the real-life impacts on what that change will do and what it would achieve.”
Bishop said the tax industry and its representatives such as CA ANZ, CPA Australia, the Institute of Public Accountants, and the Tax Institute need to always be prepared to argue their case with Treasury officials.
It was also indicated what the power and influence that government officials, local members, the opposition, crossbenchers, and backbenchers can have on parliamentary and Senate inquiries.
Bishop said bringing particular tax issues to the attention of a local member can be significantly beneficial, as local members want an issue or policy that their team can work on and promote.
“It’s a lot of work, but that’s why tax industry groups exist,” she said.
“So that you can persuade government to a better outcome. Tax reform is hard and you can lose your political scalp over it.
“But what’s the point of not doing something if you’re in government to implement things you’re passionate about. It takes a lot of courage but we will find leaders with political courage again.”
In addition to seeking out a local member of Parliament to express tax concerns to, Bishop said taking concerns to a backbencher is another significantly powerful option.
The backbencher would be the figure to present the idea to the party and relevant minister as Treasury hates “surprises”.
“Backbenchers are always looking for ideas to bring forward, to show the party room how clever and smart they are, how ‘on the money’ they are and how they’re reflecting the views of their electorate,” Bishop said.
Involving relevant members of the government and advocacy who have influence “where it matters” is crucial in becoming part of the initial and ongoing debate.
“You’ve got to be part of the conversation and debate,” Bishop said.
“That means you’ve got to put your faith in your institutes and industry bodies to get out there and lobby for you.”
