Tax simplification: Cutting through the red tape
The Tax Institute writes to the Board of Taxation (the Board) following our discussions at the meeting of our National Large Business and International Technical Committee on 5 August 2025. During that meeting, the Board requested that we provide some recommendations for how to reduce red tape and the compliance burden in respect to the administration of the taxation and superannuation systems.
We also take this opportunity to thank the Board for the opportunity to participate in its stakeholder event on red tape and compliance burden reduction for small business on 25 September 2025.
We welcome the Government’s recent announcement that the Board will conduct a review to identify compliance burdens and red tape in the tax system. The Tax Institute looks forward to contributing to this review and working collaboratively with the Board to identify such burdens and opportunities to alleviate them.
In the development of this submission, we closely consulted with our National Large Business and International Technical Committee, National Superannuation Technical Committee and the Fringe Benefits Tax and Employment Taxes Technical Committee to prepare a considered response that represents the views of the broader membership of The Tax Institute.
Considering the government’s current focus on increasing productivity, it is timely that the need to reduce red tape and implement some immediate solutions is being considered by the Board. By reducing bureaucratic hurdles and simplifying compliance processes, we can help create an environment that fosters innovation and efficiency. This is crucial particularly for small businesses, that often face disproportionate challenges in navigating complex regulatory frameworks. While the recommendations outlined in this submission are no substitute for comprehensive tax reform, we consider that our proposals can help ease the burdens experienced by taxpayers until a broader tax overhaul is achieved.
In addition, our members consider that cutting red tape, promoting business certainty, reducing compliance costs, deregulation, and simplification should be core objectives for government agencies such as the Australian Taxation Office (ATO) and the Treasury. The ATO, in particular, should adopt these as formal objectives to be considered in both administering the law and consulting on new law.
We have divided this submission into four key themes: Large Business and International, Superannuation, Small Businesses, and Fringe Benefits Tax (FBT).
Our detailed observations and recommendations are contained in Appendix A.
We note that this paper focuses on small improvements and immediate action items to help reduce red tape. There is a need for broader simplification and reform. In this regard The Tax Institute has published, among other materials, the following key products which may be of further assistance to the Board:
- the Case for Change, our 2021 landmark discussion paper, considers the Australian tax system holistically. It identifies the aspects of the system that are performing well, and those that are lacking, proposing a range of options for reform which remain relevant today. The Case for Change aims to inform policy discussions and drive meaningful changes in Australia’s tax framework to bolster business growth and economic resilience;
- Incoming Government Brief: June 2025, which, following the federal election on 3 May 2025, details key tax and superannuation measures announced by previous governments that remain unenacted ahead of the commencement of the 48th Parliament, and certain other aspects of the system in dire need of reform;
- our recent submission to the Productivity Commission in response to its consultation on the interim report on creating a more dynamic and resilient economy;
- our earlier submission to the Productivity Commission in response to its consultation on Pillar 1: Creating a More Dynamic and Resilient Economy, which outlines the crucial role of the tax system in shaping the Australian business landscape and key changes that can be made to foster investment and productivity growth; and
- our submission to the federal Treasury consultation ahead of the upcoming Economic Reform Roundtable.