As Treasurer Jim Chalmers prepares for a major economic reform roundtable in August, the Commonwealth Bank of Australia (CBA) has weighed in with a strong call for bold tax reform—one that prioritizes productivity over politics.
In its submission to the Productivity Commission, CBA urged the government to:
- Cut personal income taxes
- Expand or reform the GST
- Introduce wealth taxes
- Cap generous superannuation concessions
Corporate tax cuts? Not a priority.
In a notable break from the Business Council of Australia (BCA)—of which it is a member—CBA argued that lowering company tax rates should not be the top priority. Instead, the bank emphasized maintaining dividend imputation and focusing on long-term fiscal sustainability.
Why Tax Reform Now?
Treasury recently acknowledged that Australia’s federal budget remains structurally unsustainable, despite back-to-back surpluses. Personal income tax now accounts for over 52% of the federal tax base, its highest share since the introduction of the GST in 2000.
“Australia needs to find a way to lower its dependence on income taxes,” CBA stated. “We believe a more sustainable, revenue-neutral tax mix is achievable.”
Superannuation in the Crosshairs
CBA supports capping tax concessions on high-balance super accounts, effectively backing the government’s plan to double tax rates on super balances above $3 million.
“The cap should still encourage aspiration,” CBA said, “but be well above the level where people rely on the state.”
While it did not directly endorse taxing unrealised capital gains in super, CBA left the door open to further reform in this space.
GST, Wealth Taxes & Political Resistance
While CBA wants GST reform on the table, Prime Minister Anthony Albanese and Treasurer Chalmers appear to be shutting that conversation down—at least publicly. Albanese recently warned that consumption taxes are inherently regressive and out of step with Labor’s agenda.
However, Chalmers has encouraged “budget-neutral ideas” that rebalance the tax system—hinting that targeted trade-offs, such as lifting the GST in exchange for income tax cuts, could still be part of behind-the-scenes discussions.
Business Views Divided
While the BCA continues to push for a lower corporate tax rate and reduced red tape, CBA believes tax reform must do more than just improve business margins—it must drive productivity, fairness, and long-term resilience.
CBA also took aim at big tech platforms, calling out global giants for offshoring profits and warning against their dominance in emerging technologies like AI and quantum computing.
What’s Next?
The Economic Reform Roundtable will take place from August 19–22, 2025, in Canberra. Expect robust debate on:
- How to broaden Australia’s tax base
- Whether super remains “too generous” at the top
- The role of wealth and consumption taxes in future reforms
- Whether politics will allow policy to progress
Our Take
At Boa & Co., we’ll be watching this evolving tax reform landscape closely. Whether you’re a business owner, investor, or planning your retirement, these changes could have material impacts on your tax position.
Need clarity on what tax reform means for you? Get in touch with our expert team at [email protected], 1300 952 286 and Visit: www.boanco.com.au