The Mortgage and Finance Association of Australia (MFAA) has urged the federal government to implement comprehensive tax reform, including raising the goods and services tax (GST), abolishing stamp duty and payroll taxes, and making the instant asset write-off scheme permanent.
These recommendations form part of the MFAA’s formal submission to the upcoming Economic Reform Roundtable, scheduled to take place in Canberra Aug. 19-21. The event, led by Treasurer Jim Chalmers, will gather federal government ministers and key stakeholders to discuss strategies for improving living standards, boosting productivity, enhancing economic resilience, and ensuring long-term budget sustainability.
“We have more than 16,000 members, representing almost three-quarters of mortgage and finance brokers in Australia, so it’s essential that the MFAA is part of the national conversation when it comes to economic reform,” said MFAA CEO Anja Pannek.
Pannek emphasized the role brokers play in providing competition and choice in the lending market. She cited findings from the Value of Mortgage and Finance Broking 2025 Report by Deloitte, stating, “The broking industry supported more than 37,000 jobs and contributed $4.1 billion to the Australian economy in FY23.”
The MFAA’s recommendations include increasing the GST rate to 15% and broadening its base to cover currently exempt categories such as fresh food, health, and education. The organization also advocates for abolishing stamp duty to promote housing market fluidity and payroll tax reform, ultimately proposing its complete removal to support job creation.
Additionally, the MFAA is calling for permanency in the instant asset write-off scheme, arguing that it would enable businesses to plan and invest in capital assets more effectively.
“Our broker members see the direct effects of constrained housing supply, inefficient taxes and policy settings. These result in placing barriers around financial mobility, productivity growth and participation in the economy,” Pannek said.
The submission argues that a more productive economy must facilitate labour mobility, enable households to adjust their housing, and support small to medium-sized business growth.
Pannek explained that these proposed reforms are bold but achievable, referencing previous structural changes such as the introduction of Medicare, compulsory superannuation, and the original GST system. “This government has both a mandate and a unique opportunity to deliver enduring transformational productivity improvements for Australians.”
The roundtable will also draw insights from five recent inquiries by the Productivity Commission, aligned with the government’s productivity agenda. The MFAA has submitted responses to four of the five pillars.
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