The upcoming election could lead to a minority government, giving the Greens party more influence over tax policy, says David Watkins, a tax partner at Deloittes.

The Greens have proposed significant tax changes, including a 40% “Robin Hood” tax on excessive profits of large corporations, and additional taxes on companies in the gas, oil, coal and mining sectors.

Watkins noted that if a minority government emerges, these policies could gain traction. Alternatively, the major parties might commit to more mainstream tax reforms.

He emphasized two priorities for the next government: addressing the backlog of unimplemented tax measures and focusing on meaningful tax reform.

Todd Want, president of The Tax Institute, pointed out that short political terms in Australia make it difficult to achieve comprehensive tax reform, especially since no single party has controlled both houses of Parliament for more than 20 years.

Want also noted that small-to-medium business issues, like Division 7A, have been overlooked by the government, despite their impact on many businesses.

Watkins criticized recent lawmaking processes, citing delays and poor implementation. However, he remains hopeful that the next government will improve consultation and deliver better-quality tax laws.