If it feels like you spend more time on tax paperwork than you used to, a new estimate suggests you are right. CPA Australia has calculated that tax compliance now costs Australia around $60 billion a year, up from the $40 billion Treasury estimated back in 2015.

What was announced

According to reporting published on 6 October, CPA Australia says small and medium businesses carry about $31 billion of that bill. It also estimates that businesses spend roughly $13 on compliance for every dollar governments spend administering the tax system, and that the burden shaves about two percentage points off economic growth.

CPA Australia is calling on the government to release the Red Tape Reduction Review, a report handed to the Treasurer on 30 June 2026 that has not been made public. It also wants a measurable goal of cutting compliance costs by 10 per cent by 2030. Its suggested quick wins include simplifying fringe benefits tax, reducing duplicate reporting by using payroll data, and improving how businesses deal with the ATO online.

In an earlier submission to the Board of Taxation, CPA Australia also pointed to simpler BAS reporting and wider use of the simplified trading stock rules as ways to cut costs.

What this means for you

Nothing has changed in the law yet, and there is no date for any relief. Until there is, the cheapest compliance is the kind you do steadily. The same bills tend to blow out when records are messy, because every question from your accountant or the ATO takes longer to answer.

What to do

  • Track your own hours. Note roughly how long you spend each month on BAS, payroll, super and bookkeeping. You cannot reduce a cost you have not measured.
  • Stop double handling. If you enter the same invoice or pay run into two systems, ask your accountant or software provider whether the data can flow through once instead.
  • Reconcile weekly. Small regular catch-ups avoid the expensive quarter end clean-up.
  • Use the simplifications you already have. Some small businesses can use simplified trading stock rules or other small business concessions. Check which apply to you.
  • Keep digital copies. Receipts and invoices you can find in seconds save hours at tax time.
  • Have your say. If you want red tape cut, tell your industry association, because compliance cost figures like these are what drive reform.

The report is a reminder that tax admin is a real business cost, not just an annoyance. Small habits now are the one lever fully in your hands.

This article is general information only and does not take your circumstances into account.