november 2008 examination - The Malaysian Institute Of Certified ...

GLOBAL INSIGHTNEWSfrom Down UnderA O FERRERS, AUSTRALIAN CORRESPONDENTFacilitating the Return of Women tothe Accounting ProfessionThe following headline recently caught my attention – NIAproposes Govt tackles skills shortage by attracting womenback to accounting.This prefaced a media release by the NationalInstitute of Accountants. What has happened is that theInstitute has called on the Commonwealth government toconsider a $2,500 training voucher scheme to help womenaccounting professionals to update their skills and re-enterthe workforce.CEO Roger Cotton has pointed out that there aremany women who have left the profession, often forpersonal reasons regarding families, who may want tocome back, either full time or part time, but feel they havebeen out of the profession too long. He noted that a lot haschanged in accounting in recent years and someone whohas been out for more than even three years may find ithard to get a job at an appropriate level because they maybe seen not to have all the skills necessary.This is where a training voucher would be helpful. Itis proposed it would be available to women who have beenout of accounting for more than 5 years. It would then beeasier for a woman to access training that would assist herto re-enter the workforce.Mr Cotton said, “Addressing the skills shortage inaccounting in Australia is an economic issue offundamental importance to this country and this initiativewould be a beneficial step in the right direction.”Wages are good and prospects excellent. Thestanding of an accountant in the community is high.Nevertheless it is difficult to attract the numbers requiredto replace those accountants leaving the profession. Manyleave because of their advancing age and there has notbeen a necessary inflow to maintain requisite numbers.More are leaving than joining.Generally speaking, women are an untapped pool oftalent. They need, in most cases, only some minor help topolish up their accounting expertise which would betterprepare them to return to the profession. The voucherscheme would facilitate this and the Institute is urging thegovernment to take it on board.A survey by the Institute of Chartered Accountants inAustralia has discovered that in fact women are breakingdown accounting industry stereotypes and embracing theprofession. In the last 10 years the number of women whohave successfully become chartered accountants has morethan doubled. Today the proportion of women charteredaccountants is 30 per cent, whereas ten years ago it stoodat 19.7 per cent. They outnumber their male counterpartsin taking up accounting.Speaking for the Institute, Michael Nazzari said, “Amore balanced gender membership base is good news forthe accounting industry as we move into the future. Thisis of particular importance and significance in the currentskills shortage environment in which we operate.”Tax ReviewIn the budget this year Wayne Swan, the Federal Treasurer,announced that there would be a major overhaul of the taxsystem under the chair of Dr Ken Henry, the head ofTreasury. A discussion paper was released on August 6, 2008with a press release containing the following words:The Rudd Government welcomes the launch today of theAustralia’s Future Tax System (AFTS) Discussion Paper byTreasury Secretary Dr Ken Henry.Long-term reform of our tax and welfare systems is akey way to secure our economic foundations for the future,create wealth, spread opportunity and reward workingAustralians.The AFTS Review will play a vital role in modernisingAustralia’s economy to meet the great economic, socialand environmental challenges of the 21st century.Meeting these future challenges - like climate change, theageing population, new technologies and rapidglobalisation – will require a tax system that is as fair andefficient as possible and the AFTS Review will help achievethat goal.The Review will be the most comprehensiveexamination of the tax system in over 50 years.In a media release CEO Roger Cotton of the NationalInstitute of Accountants welcomed this initiative and theopportunity for discussion with all interested parties,particularly the accounting professions. For many yearsthe professions have wrestled with the complications of taxlaw and any simplification is good news.He made these comments, “The complexity in the taxsystem is an enormous disadvantage and cost to smallbusiness. We realise that often simplicity is traded offagainst certainty in the tax system and the review willprovide an opportunity to reconsider the fundamentalprinciples of tax design and to achieve serious tax reform.“Another key issue is our ageing population. The NIArecommends removing incentives for early retirement andencouraging delayed retirement through reduced rates ofincome tax. Tax is a key factor in driving workforce36 | The Malaysian Accountant | August 2008 www.micpa.com.my