Treasury’s Economic Reform Roundtable, to be held in August 2025, aims to consider ways to improve productivity, enhance economic resilience and strengthen budget sustainability.
Pitcher Partners Advisors Proprietary Limited’s submission to the Roundtable proposes six key reforms to encourage productivity through a reduction in systemic complexity and regulatory burden, while fostering business investment.
Our submission focuses on reforms that would make a real difference to the vital middle market sector, which contributes approximately half of Australia’s economic activity and employment.
The six key recommendations include:
- Replace trust provisions with a uniform entity regime – Implementing a simplified private corporate tax flow-through model applicable to trusts, partnerships, and companies to reduce complexity and administration.
- Tax consolidation for middle market entities – Allowing private family groups to expand the current tax consolidated regime to include discretionary trusts.
- Flatten the personal income tax rate structure – Further alignment of the top marginal rate with the corporate rate to reduce incentives for income splitting and tax-driven structuring.
- Enable income sharing between spouses – Allowing spouses to share tax brackets to further reduce incentives for income splitting and tax-driven structuring, foster equity and reduce penalties on single-income families.
- GST reforms – Broadening the GST base and increasing the rate to enhance revenue stability and reduce dependence on income taxes.
- Strategic investment incentives – Providing targeted incentives that align with outcomes that demonstrably improve labour productivity. These incentives should also be straightforward to apply and stable.
You can read our full submission below.
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