Two years ago, when the IAB last reported on Australia, there was widespread dissatisfaction with a tax system that many felt was not fit for purpose. Despite intense lobbying from the business community, very few of the reforms that were recommended in 2009 have been enacted.
“It seems no government in Australia is prepared to do what it takes to seriously consider tax reform at the risk of their political future,” says Greg. “There is no doubt tax reform is necessary to create a fairer system for all Australians, but the foundation must be a broader consumption tax that in the very short term would be unpopular. We have way too many different taxes that are levied on businesses and individuals, yet only a small number that account for 90% of the tax revenue raised.”
Devan adds: “The last major review of Australia’s tax system, known as the Henry Review, was completed in December 2009. While it made 138 recommendations, only a few were implemented. A recent trend of changing prime minister, and governments not having control of the upper house of parliament (the Senate), has potentially resulted in a reluctance and/or an inability to implement meaningful reform. As a result, Australia’s tax system suffers from a low revenue base and is extremely complicated, with one effect being that there are many announced but unenacted measures.”
Devan also outlined where his firm is focused next.
“Technology will without a doubt be a huge focus for us and our business. AI is increasingly handling routine and transactional tasks, such as data entry reconciliation, and even aspects of compliance, which is reducing the need for junior-level, process-focused roles.”
New Zealand: steady demand after a tough year
New Zealand is showing signs of recovery after a harsh recession in 2024. GDP growth in early 2025 exceeded forecasts, helped by renewed investor confidence and a surge in capital inflows. Firms are seeing strong demand across advisory, ESG, virtual CFO work, and strategic project delivery.
Dan comments: “Accountants are shifting to more of a quality assurance role. Ultimately, we see this evolving into full advisory within the next five years. There is an increasing need for deeper, more strategic client relationships, which calls for a team with stronger advisory capability and commercial awareness.”
Firms in New Zealand continue to grapple with staffing shortages, although the tightness in the labour market has eased slightly. Dan notes that to fill roles, local accountancy firms have to be prepared to consider recruits from other industries. “Graduate numbers are still low, and there is a shortage of senior, qualified accountants,” he said. “To help bridge the gap, we are looking beyond the traditional, and welcoming skill sets from banking, finance and commerce to support our growing advisory work.”
Advisory work, climate-related reporting, AML compliance, and integrated services are all pushing firms to rethink recruitment, structure, and service delivery models. M&A activity is on the rise, driven by the need to scale and secure talent.
Outlook: preparing for what's next
While Australia and New Zealand face different economic pressures, both markets are moving toward tech-enabled, advisory-focused models. It's great to see that our MGI Worldwide firms are embracing internal transformation to meet client needs and regulatory change—positioning themselves for opportunity in a challenging but promising future.
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Click the links for more information about our contributing member firms, Accru Melbourne, MGI Dobbyn Carafa and MGI+MORE.