In a major address to the National Press Club, Treasurer Jim Chalmers signalled his intention to pursue a long-term, productivity-focused overhaul of Australia’s tax system.
The move has been welcomed by CPA Australia, one of the country’s largest accounting bodies, which is urging the government to prioritise GST reform and reduce the system’s heavy reliance on income tax.
For the real estate industry, this could mark the beginning of a significant policy shift—one that could reshape the investment landscape, influence development pipelines, and alter how agents and their clients do business.
“Australia has gone too long without a clear, coordinated plan to modernise our tax system,” said CPA Australia Chief Executive Chris Freeland AM.
“This should be a key outcome for the government’s productivity roundtable.”
CPA Australia is calling for an end to the government’s requirement that all tax reforms be “budget neutral or budget positive”—a restriction Mr Freeland says will stifle ambition and innovation.
“Some of the most effective reforms—such as rebalancing the tax mix or improving system design—may cost money upfront but deliver stronger growth, higher productivity and more sustainable revenue over time,” he explained.
Among the reforms on the table is the long-debated Goods and Services Tax (GST).
Though the Treasurer avoided specifics, Mr Freeland made it clear: GST reform must be prioritised.
For real estate professionals, this could have direct implications for off-the-plan sales, development costs, and the treatment of property-related services under GST rules.
There’s also broader relevance. The property industry has long been caught in the crosshairs of tax policy debates, from capital gains tax concessions to negative gearing.
A comprehensive, consultative tax review opens the door to re-examining these mechanisms in a more balanced, long-term context.
Mr Freeland also emphasised the importance of structured, staged reform and public consultation.
“Tax reform must be practical and achievable,” he said.
“The best ideas are those that improve integrity, simplify compliance and provide certainty for taxpayers and business.”
The Treasurer’s upcoming productivity roundtable is expected to produce a roadmap for reform – one that real estate professionals would be wise to watch closely.
With the housing market already under pressure from affordability challenges, supply constraints, and shifting interest rates, tax reform has the potential to be either a stabiliser or a disruptor.
“Australians deserve a mature and honest conversation about the trade-offs required to fund the services and resources they expect,” Mr Freeland said.
The real estate industry will be listening closely. Because when tax reform hits the headlines, the housing market often follows.
