In recent weeks, the Treasurer has emphasised that Australia’s tax policy remains unchanged for now, while confirming that a significant tax reform review is not on the near-term agenda. Yet behind that message, there’s growing momentum for meaningful, well-designed changes to build a fairer and more productive system.

The Gap Between Timing and Momentum

During the recent economic reform roundtable, leaders from business, academia, and government deliberated on an improved tax system focused on three objectives:

• Promoting intergenerational fairness

• Encouraging business investment

• Simplifying a complex structure

While these are not immediate reform guarantees, the discussion signals recognition that the current system doesn’t serve all generations equally.

What’s on the Table (But Not Yet Ready)

Several areas are in the mix for future reform, but none are settled:

• Corporate tax adjustments — The Productivity Commission has proposed cutting the company tax rate to 20% for small-to-medium businesses earning up to A$1 billion.

• Intergenerational fairness — Experts highlighted the unequal burden on wage earners compared to passive income areas like superannuation, trusts, and capital gains.

• Minor but meaningful changes — Quick-win ideas such as road-user charges for EVs, removing red tape, and streamlining regulations are being fast-tracked.

RPWM’s View: Still Time to Align and Act

For investors, this period matters less for tax headlines and more for the closing window to align your financial strategy with what lies ahead.

Here’s what we’re focused on:

• Anticipating change, not reacting to it. Start framing your plan now so you remain robust if reforms emerge.

• Keeping choices strategic, not speculative. Avoid moves that could disrupt long-term goals for temporary perceived tax advantages.

• Reviewing product, but prioritising process. Let your core investment plan guide your decisions—not headlines.

What You Can Do Today

• Reconnect with your goals and assess the potential impacts of changes, such as capital gains tax or superannuation adjustments.

• Discuss scenarios with your advisor—should tax settings shift, will your strategy hold?

• Be prepared, not reactive. The tax system may not have changed yet, but strategies built today must remain nimble.

Thinking ahead makes all the difference. If you’d like to discuss how potential tax reforms, from fairness to simplicity, might influence your financial roadmap, let’s talk.