In its new paper, The first 100 days: priorities for a stronger economy, the Institute has outlined a number of key policy areas that need addressing by the new federal government to put our economy on a more sustainable path. This is the latest paper in our future[inc] series, a two-year program of work that explores the major public and economic policy challenges confronting the nation over the coming years and decades.

1. charteredaccountants.com.au/futureinc
100 days
the first
PRIORITIES FOR A
STRONGER ECONOMY

2. Our country is facing some significant
economic policy challenges including an
ageing population, slowing productivity growth
and an unemployment level that is set to rise –
all against a backdrop of global uncertainty
and a mining boom that has reached its peak.

3. There is a short window
of opportunity to set up
processes that will help
the new government deliver
effective policies throughout
THIS term in office.
A rigorous policy-making process
will result in better policy outcomes.
It will ensure that every foreseeable
consequence is identified and that these
implications are properly weighed up
against the national agenda.
Meaningful and timely consultation with
key stakeholders outside of government
must be a mandatory part of the policy-
making process to ensure new proposals
are practical and sustainable in the
real world.
Setting up good processes is not
glamorous, but it’s important work.
If the new Coalition Government takes
the time to embed the right processes
early on, it will pay huge dividends
down the track.
The government also needs to be
accountable to the Australian people in
both the short and long term. While this
paper focuses on the first 100 days in
office, it should serve as a starting point
for the next decade to deliver a smarter,
stronger, more productive nation.
The first 100 days of any new government is crucial

4. THE FIRST 100 days: PRIORITIES FOR A STRONGER ECONOMYcharteredaccountants.com.au/futureinc
01Policy making
The new government must provide the public
with timeframes for the implementation of each
Coalition election commitment within the first 100
days. Additionally, it must announce the start of
a comprehensive review of all outstanding policy
announcements from previous governments that
have not yet been implemented. This review should
include a clear schedule for enacting or abandoning
each outstanding announcement. Taking these
steps will provide immediate certainty in relation
to longstanding policy announcements that have
never been finalised, some of which extend back
as far as a decade.
Looking ahead, the government should maintain
this approach by providing specific timeframes for
enacting legislation when policies are announced.
It must also ensure that the relevant government
departments are properly resourced to guarantee
timely implementation.
Business needs to be involved in a more robust
and transparent consultation process on policies
that impact our economy. This consultation should
be genuine and start at the beginning of the policy
making process. Too often business is consulted after
the policy has been designed when it is too late to
have effective input or fix unintended consequences.
The use and timing of regulatory impact statements
should also be revisited by the Coalition Government
within the first 100 days. They are an important tool
for identifying the true compliance cost impact
of particular policy changes and any unintended
consequences of the proposed measures. Changes
need to be made to the processes around the
mandatory preparation of regulatory impact
statements to achieve these outcomes.
02The Federal Budget
The government needs to take a more business-
minded approach to balancing the federal budget.
In recent years we’ve become fixated on a set
timetable for a return to surplus. That thinking
must change. An artificially accelerated timetable
‘back to black’ could inflict further stress on
sectors in our economy that are already doing it
tough, which would result in a far worse economic
outcome than delaying a return to surplus.
The Coalition Government must provide an update
on our fiscal position in the Mid-Year Economic and
Fiscal Outlook within the first 100 days. There are
some ‘big ticket’ items on the Coalition’s list of
election commitments including the proposed new
Paid Parental Leave scheme, continuing the roll-out
of the National Disability Insurance Scheme and the
abolition of the carbon pricing mechanism.
There is also every chance that our fiscal revenue
position will continue to weaken over the short
term. If further cuts to expenditure are deemed
necessary by the government, then the dimensions
of these cuts must be outlined as they are realised.
The government must also outline the terms of
reference for its proposed Commission of Audit
within the first 100 days.
The first steps towards
a stronger economy

5. THE FIRST 100 days: PRIORITIES FOR A STRONGER ECONOMYcharteredaccountants.com.au/futureinc
03Tax Reform
Tax reform is fast becoming the number one structural
problem facing our economy. In the past few months
we’ve seen how drastically revenue write-downs
can affect the nation’s budget position. This in turn
impacts on the capacity of the government to deliver
existing programs and future reforms designed to
improve our prosperity. In its first 100 days, the
new government must outline what steps it will
take to manage the deterioration in the tax base
revenue projections.
There’s a big opportunity for the new government
to kick-start the tax reform agenda. A lot of the hard
work in relation to analysing the problems with our
existing system has already been done – we don’t
need to replicate that work. Instead, the government
must start to identify a tax reform blueprint for the
future which moves us towards a more sustainable
tax base. This would help to deliver the fiscal
capacity future governments will need to fund
increases in expenditure in areas such as healthcare,
infrastructure and education. We also need a tax
system that is competitive on a global scale to
continue to attract business into Australia.
The conversation about tax reform is going to be
an uncomfortable one and it will need a community
education campaign on why this topic is too
important to ignore. We are going to need to talk
about whether our current tax base needs to be
revised upwards and the role that a broader based
GST with a higher rate might play as part of a
longer-term rebalancing of our tax system.
04Carbon pricing
Australia will be taking a step backwards if the
carbon price is repealed. Driving businesses to
become more carbon efficient is critical for our future.
Similarly, if the Clean Energy Finance Corporation
(CEFC) is disbanded there will be a gap in our ability
to encourage investment in clean energy technology.
If the government pushes ahead with the repeal of
the carbon pricing mechanism and disbanding of the
CEFC, a multi-stakeholder expert taskforce should be
formed to help manage that process from the outset.
Repealing the carbon price 18 months or more after
it has been implemented will have a significant impact
on business including, for example, the potential
impairment of units held as assets on balance sheets.
While a transition ‘back in time’ might sound simple
enough in theory, in reality, there will be a broad
range of potentially significant consequences that
government and business haven’t yet fully considered,
such as the potential impact on financial reporting
and profit results.
The government must also provide a clear and
unambiguous commitment to reaching the 2020
emissions target to reduce carbon emissions by
five per cent on 2000 levels – without a caveat
on costs. Businesses need this certainty so they
can invest in low carbon business practices in
the knowledge that they are taking steps in the
right direction.

6. THE FIRST 100 days: PRIORITIES FOR A STRONGER ECONOMYcharteredaccountants.com.au/futureinc
05Minerals resource rent tax
The government’s proposal to repeal the Minerals
Resource Rent Tax (MRRT) must be carefully thought
through, particularly in relation to the unwinding
of deferred tax assets. Consultation, not just with
the mining sector but with broader business
representatives, is paramount.
The government should retain some of the
concessions that have been linked to the MRRT
package, including the small business instant asset
write-off and the carry-back of company tax losses.
These measures were recommended by the Henry
Tax Review and help to support small businesses
at a time when the economic climate is fragile.
The government should also retain the low income
super contribution scheme to help low income
earners save for their retirement.
07BUSINESS REGULATION
Reducing the burden of regulation is central
to making life easier for small to medium-sized
businesses and the government’s election
commitment to make at least $1 billion worth of red
and green tape cuts each year is the right thing to do.
The government must provide an outline of how
it intends to cut the first $1 billion of compliance
costs within the first 100 days of office. A blueprint
for future cuts to red tape would also be beneficial
for small to medium businesses to help them plan for
potential changes. Equally important is consultation
with business, as they are best placed to advise on
what changes will provide the greatest administrative
relief – the answer may be different in different
sectors of our economy.
06Infrastructure
The Coalition committed to a range of standalone
road projects during the election campaign,
however industry experts agree we cannot build
our infrastructure network on an ad-hoc basis when
the national infrastructure deficit is estimated at
over $770 billion.
In the first 100 days, the government must commit
to providing an overarching national infrastructure
plan that addresses this deficit and looks at our long-
term infrastructure needs. The government should also
facilitate better cooperation and planning between state
and federal governments so that major infrastructure
projects can be rolled out in a coordinated format,
where prioritisation is given to projects that provide
the greatest economic and social returns to the nation
as a whole.
08Skills and education
Education is vital to boosting productivity. It pays
long-term dividends both socially and economically.
In these first 100 days, the Coalition Government
must silo the entire education sector from budget
cuts. It cannot be the go-to department when times
get financially tough. The Gonski school reforms
should press ahead as promised by the previous
government so our students can get the education
they need in order to stay globally competitive.
The government must also move to immediately
‘scrap the cap’ – that is, abandon the proposed
$2,000 cap on the tax deductibility of self-education
expenses. This policy proposal announced by the
previous government is a short-sighted savings
measure that will damage the future productivity of
our workforce. A monetary cap is bad policy and the
new government should not be afraid to stop it from
being implemented.

7. THE FIRST 100 days: PRIORITIES FOR A STRONGER ECONOMYcharteredaccountants.com.au/futureinc
09Workplace productivity
The Coalition Government has committed to a
Productivity Commission review into child care and
associated benefits to encourage parents back into
the workforce. Accessible and affordable child care
is crucial to improving workplace participation and
the review will be an important first step towards
addressing the issue. However, the government’s
proposed 10-year timetable for enacting change
in this sector must be brought forward. We cannot
afford to wait for up to a decade before we start
addressing what is a structural problem in our
economy.
The government should initiate the Productivity
Commission review within the first 100 days of
office. The review should also include a cost-benefit
analysis of the government’s Paid Parental Leave
scheme to assess whether some of the money
allocated to it could be better directed towards other
workforce participation measures that would deliver
more impactful economic outcomes.
The government must also boost productivity by
assisting Australian businesses to engage and
grow in Asian markets. Australia’s future prosperity
is inextricably tied to the living standards and
prosperity of our neighbours in Asia and it is
incumbent on the government to help businesses
move into new markets and compete on the
global stage.
10G20 priorities
The hosting of the G20 series of meetings in
Australia in 2014 is a key opportunity to shape
the agenda for what has now become one of
the world’s leading economic summits. The G20
nations collectively represent 85 percent of the
world economy, and 80 percent of global trade.
Hosting the meeting in Australia represents an
important opportunity to showcase not only our
nation, but also our capacity to ‘think big’ and
tackle the major economic and social issues
confronting the world economy over the next
few years.
The official start of Australia’s host year begins
on 1 December 2013, and in line with this the
government should outline its priorities for next
year’s agenda. This will provide the business
community with enough time to plan their
activities around the business forums attached
to this event.
The previous government committed to putting
multinational tax and base erosion on the G20
agenda for 2014. This should remain. Greater
collaboration between countries will help improve
the effectiveness of the international tax system
and avoid any potential risks that governments
will attempt to ‘go it alone’. Australia is heavily
reliant on foreign direct investment to help drive
growth. Aligning our regulatory systems with
OECD standards is an important step in enabling
Australian businesses to compete efficiently on
the global stage.
The G20 should focus on ensuring that new
regulatory frameworks involving capital markets
strike an appropriate balance between protecting
investors’ interests and allowing businesses to
compete in global markets.
These are the big issues that the Coalition
Government must start to address over
the next three years – And the planning
needs to start in the first 100 days of office

8. Future[inc] is a two-year initiative that explores the major public and economic policy
challenges confronting the nation over the coming years and decades. As part of this initiative
the Institute has consulted widely within the business community to identify what business
leaders believe are the priorities for developing a sustainable economy and a more prosperous
future for our nation. The Institute has released two papers in the future[inc] series so far.
The first paper, Developing a plan for Australia’s economic prosperity, was launched in April
2013 and is a comprehensive analysis of our future economic outlook, framed around a SWOT
analysis of all corners of our economy. The second paper, An economic policy platform for the
next term of government, sets out the big issues the incoming government will have to tackle
and ways to strengthen our national economy over the next three years.
Disclaimer
Copyright © The Institute of Chartered Accountants in Australia 2013. All rights reserved. This publication is copyright.
Apart from any use as permitted under the Copyright Act 1968, it may be copied, published or communicated in any
form or by any means, provided that it is not amended or adapted without the prior written consent of The Institute of
Chartered Accountants in Australia and the ownership of copyright by The Institute of Chartered Accountants in Australia
must be attributed at all times.
This document was prepared by The Institute of Chartered Accountants in Australia. The information in this document
is provided for general guidance only and on the understanding that it does not represent, and is not intended to be,
advice. It is not intended to address the circumstances of any particular individual or entity. There can be no guarantee
that the information contained in this document is accurate as of the date it is received or that it will continue to be
accurate in future.
Before making any decision or taking any action, you should consult with an appropriate specialist or professional.
No warranty is given to the correctness of the information contained in this document, or its suitability for use by you.
To the fullest extent permitted by law, no liability is accepted by The Institute of Chartered Accountants in Australia for
any statement or opinion, or for an error or omission or for any loss or damage suffered as a result of reliance on or use
by any person of any material in the document. ISBN: 978 1 921245 65 7
The Institute of Chartered Accountants in Australia. Formed in Australia. Members of the Institute are not liable for the
debts and liabilities of the Institute. ABN 50 084 642 571.
Join the members group
Institute of Chartered Accountants Australia
Tweet us
@Chartered_accts #FutureInc
Join the conversation
charteredaccountants.com.au/mycommunity
Watch our videos
youtube.com/charteredaccts
Follow us
www.gplus.to/charteredaccountants
Follow us
0813-70
More information online at charteredaccountants.com.au/futureinc