With the Albanese Labor government securing a second consecutive term for the first time in 21 years, Australia’s finance and accounting sector is set for significant reforms and new opportunities.
Here’s what businesses should expect from the centre-left Australian Labor Party in the coming years:
Productivity Reform at the Core
The Labor government has made boosting productivity its top economic priority for the next three years. The Productivity Commission will lead reforms across five key pillars, likely affecting reporting requirements, compliance, and digital transformation in the finance and accounting sectors. This focus aims to:
- Streamline regulatory processes
- Enhance operational efficiency
- Promote adoption of innovative technologies
Economic Stability and Policy Certainty
With a clear majority, the Australian Labor government is expected to pass its March budget measures smoothly, including utilities rebates and income tax cuts.
This stability will drive business confidence and long-term planning, creating increased demand for:
- Tax advisory services
- Financial planning and compliance support
Support for Small and Medium Enterprises (SMEs)
The government is investing over $640 million in targeted support for SMEs, focusing on cyber resilience, digital capability, and simplified business registers. This will drive:
- Greater need for advisory services in digital compliance and cybersecurity
- Increased engagement with government incentives and grants
Tax and Regulatory Changes
Key tax measures include extending the $20,000 instant asset write-off for small businesses and introducing a $1,000 instant tax deduction for individual work-related expenses starting in 2026–27. These changes will:
- Simplify tax processes for individuals and businesses
- Require accountants to guide clients through new deductions and compliance requirements
Additionally, the government plans to crack down on financial abuse related to tax debts, aiming to protect vulnerable taxpayers and ensure perpetrators are held accountable.
Overhaul of Financial Reporting Architecture
A major reform underway is the consolidation of Australia’s financial reporting bodies into a single entity overseeing accounting, auditing, sustainability, and assurance standards. This new structure will:
- Reduce duplication and regulatory complexity
- Increase consistency and flexibility in standard-setting
- Support evolving priorities such as sustainability and investor confidence
Treasurer Jim Chalmers emphasised that this reform would build a more competitive and productive economy by streamlining standards development and reducing compliance costs.
What This Means for the Industry in General:
- Increased regulatory and compliance work as reforms are implemented
- Growing demand for advisory services related to tax, digital transformation, and government incentives
- Opportunities to engage with emerging ESG and sustainability reporting standards
- Greater policy certainty supporting business confidence and strategic planning
The Australian finance and accounting industry is on the cusp of considerable change – from major regulatory reforms and evolving tax structures to increased digitisation and ESG reporting requirements.
These changes will strongly influence how firms operate, deliver value and remain competitive. To navigate this transition, Australian accounting firms will require a partner who understands the pace, nuance, and complexity of change to respond with clarity and confidence.
That’s where H Connect International comes in. We support Australian accounting firms and in-house finance teams through change by providing consistent, high-quality delivery across tax, compliance, and advisory work. Our operating model is designed to scale with your needs, absorb regulatory complexity, and give your team the bandwidth to focus on what matters most –strategic insight, client relationships, and growth.
With robust processes, built-in quality controls, and an internal L&D framework that keeps our people aligned to Australian standards, we offer seamless support through whatever reforms the future holds.
Change is coming – let’s make sure you’re ready for it.
Reach out to start the conversation.
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