Reframing Tax Survey 2025: Australian insights

A convergence of global megatrends – with technological disruption being one – are compelling CEOs around the world to transform their operations and reinvent their business models. Tax can play a critical value-driving role in such activity. But our inaugural Reframing Tax Survey reveals a disconnect: while organisations are pushing ahead with change, tax teams are often excluded from key decisions, particularly those involving transformation and technology. This stems in part from a gap between how other functions perceive the value of the tax function and the actual value that tax can bring. As a result, organisations are missing out on the full strategic value tax can deliver.

Tax teams must proactively ‘reframe’ their role – engaging their CEO’s and the broader C-suite to demonstrate the strategic importance of tax considerations. A well-articulated tax strategy, aligned with the organisation’s wider business objectives, is one way to get such stakeholder buy-in. This has never been more urgent. In a time of growing geopolitical and economic pressure – tax needs a seat at the table. 

This survey provides a comprehensive view of the opportunities and challenges facing tax executives. It highlights the growing regulatory complexity – like Pillar Two, the upcoming changes to the Superannuation Guarantee (SG) regime with the introduction of Payday Super, short form, and the supplementary goods and services tax (GST) return, to name a few – and how there is a need to improve skills, revisit the tax operating model and harness artificial intelligence (AI) and automation to create maximum value-add to an organisation. 

Tax teams must now seize this opportunity to elevate their role and become indispensable partners in driving business transformation and competitive advantage.

Our inaugural 2025 survey represents feedback from:

• 50 respondents in Australia, from 1,205 global respondents in 47 countries 
• $1bn to $10bn+ turnover – half of the top 100 corporate taxpayers in Australia
• respondents from general management positions (C-suite), the finance and tax functions, and
• cross-section of industries

Over the past five years, according to PwC’s 28th Annual Global CEO Survey – Australian insights, forward-looking CEOs in Australia have targeted new customer bases, new routes to global markets, new pricing models and developed new and innovative products or services. This isn’t surprising, as there’s a strong association globally between the number of reinvention actions companies have taken and the profit margins they achieved. Tax can play a critical value-driving role in business reinvention. By proactively integrating tax strategy into the business model reinvention process companies can mitigate risks,unlock financial gains and enable more efficient, future-ready operations.  

However, as the Reframing Tax Survey results show, the majority of tax professionals report limited early involvement in key strategic decisions, limiting the tax function’s ability to influence business reinvention.

A considerable 64% say the tax function is consulted only after strategic plans are finalised, and a further 5% report being brought in after a project is already complete. That leaves just 32% involved early, during the critical planning phase of strategic business decisions such as a business restructure, an asset acquisition, a supply chain model change, or a broader finance or technology transformation.

When do you expect your organisation's tax function to get involved in strategic decisions?

This lack of early engagement limits tax’s ability to contribute meaningfully – not only to core strategy, but also to navigating broader external challenges. As an example, tax can play a crucial role in addressing geopolitical challenges faced by businesses, including shifting trade dynamics and tariffs. By bringing tax specialists into the conversation from the beginning, companies can enhance their ability to tackle these intricate global matters more efficiently and effectively.

Protect value in mergers and acquisitions

Another critical area where early tax involvement is essential is in mergers and acquisitions (M&A) where it plays a vital role. In some cases, tax considerations are introduced too late, with professionals brought in only after legal documents are drafted and financial models nearly complete. This delayed approach can result in suboptimal structuring, excessive debt burdens, incorrect tax assumptions, double stamp duty liabilities, and the neglect of potential tax relief or capital expenditure deductions.

On a similar note, there is a noticeable disconnect in how closely tax strategy is seen to align with business model reinvention efforts. While half of the tax professionals believe there is close alignment, with finance broadly aligned at 40%, only 8% of general management agree. The majority of general management (92%) believe the alignment is only partial. 

This echoes another finding that only 15% of general management consider the tax function to be playing a significant role in influencing and informing any strategic decisions – again in direct contrast to the perception of tax and finance professionals (50% and 47%, respectively).

How closely is your tax strategy aligned with your efforts to reinvent your business model?

The disparity in perception points to a deeper issue: a disconnect between the strategic value tax can offer and the influence it is perceived to have. This gap is often reinforced by limited investment in tax capabilities – driven by a belief among budget holders that tax is not a priority area. To shift this view, tax teams need to actively reframe their role by engaging chief financial officers (CFOs) and the C-suite, clearly demonstrating how tax considerations can support business-wide goals. Developing a tax strategy that aligns with broader organisational objectives can help secure buy-in and elevate the function’s role in decision-making – ensuring a more integrated, forward-looking approach to long-term value creation.

There is a clear need for stronger integration of tax into strategic conversations. The challenge is how tax teams achieve this. How can tax functions raise their profile and become more strategically relevant to the organisation?

Tax and sustainability

As market pressures to adopt sustainable practices intensify across industries – and as leadership commits to this critical transition – some organisations are responding with initiatives like power purchase agreements, green refinancing, fleet electrification and solar energy investment. To contribute meaningfully to these efforts, tax must be more closely connected with operations, finance, legal and commercial teams, ensuring sustainability strategies are both effective and optimised.

How are you preparing for the impact of environmental tax regulations on your tax function?

Across all functions, only 46% believe their tax strategy is fully aligned with sustainability and ESG goals, compared to 60% globally. This disconnect is especially pronounced within general management, where just 8% see full alignment. However, tax and finance (60%) believe they are prepared and engaged to align, with tools such as carbon calculators (24%), environmental impact assessments (22%) and investing in technology and data analytics to meet evolving sustainability standards (22%). 

The tax department’s role in shaping and implementing the organisation’s sustainability strategy is largely seen as supportive, with 62% of respondents sharing this view. This is another area where tax professionals need to be engaged early in strategic planning to avoid unforeseen exposures and advise on tax-efficient investment.

New legislation and compliance obligations are a major challenge for tax teams here in Australia and across the world, with constant change being the new normal. 

Increasing compliance reporting including the introduction of the OECD’s Pillar Two regulations, upcoming transformation of the Superannuation Guarantee (SG) regime, short form, and the supplementary GST return, to name a few, will only intensify the strain. As requirements continue to evolve, tax teams are under mounting pressure to adapt quickly, ensure accuracy and manage risks.

How well-placed will your tax function be in the future to respond to the growing need to be...?

Just 18% of Australian respondents thought they were well-placed to handle the increasing regulatory burden that was coming their way (compared to 43% globally). Similarly, ‘constantly changing tax regulations’ was cited as the biggest obstacle to a more agile approach to tax planning. 

These results highlight a disconnect between the growing challenges facing tax functions and the investment needed to strengthen their ability to respond. Clearly communicating the resources required to deliver strategic value, enhance efficiency and maintain compliance will be essential for tax teams to secure stakeholder alignment and support.

How is your organisation preparing for the implementation of the OECD's Pillar Two regulations?

The introduction of the OECD’s Pillar Two regulations is one of the main changes keeping tax teams busy. Both Australian and global organisations are actively preparing for the changes, with many taking similar steps, including increasing tax reserves (72% in Australia vs 52% globally), engaging external advisors (54% in Australia vs 52% globally) and revising company tax policies (52% in Australia vs 47% globally).

The impact of Pillar Two is being felt across sectors, albeit unevenly. Half of respondents in Australia’s energy and resources sector expect a significant impact on future business models – a figure that mirrors the global average. The consumer markets sector was at 40%, however, only 18% of financial services and 8% of the industrials and services sector. This suggests varying levels of risk exposure across industries.

Locally, other evolving compliance obligations continue to both broaden and deepen the challenges for tax functions. 

These growing compliance demands could be the trigger that repositions tax as a strategic partner, reflecting a fundamental shift in how its value is understood and applied. Yet the current landscape shows a clear mismatch between rising demands and the resources allocated to meet them. Only 38% of organisations are investing in automation to support their tax functions, and an overwhelming 92% of general management report a skills gap. 

This underinvestment highlights a critical disconnect between tax functions and organisational leadership, potentially hindering their ability to not only remain compliant but also to engage in strategic planning and value creation. Bridging this gap through better alignment and communication with finance and leadership could unlock the necessary investment to transform tax functions into proactive, integrated contributors to organisational success.

Your next move

Skills shortage is a concern for all functions in our survey, not only in Australia, but globally. 

In Australia, 41% of tax professionals cite the skills gap as a top concern – a figure that rises to 63% globally. This is followed by finance (40% v 50% globally) and general managers (8% v 49% globally). 

The dynamic and increasingly diverse nature of tax work today may help explain the skills gap. Regulations are constantly shifting and with technologies like AI and data analytics becoming core to the role, tax professionals need a highly specialised and continuously evolving skillset. Compared to broader finance roles or general management, tax demands more niche expertise, contributing to the perception of a greater gap.

So what are the skills tax teams need most? In both Australia and globally, knowledge of AI tops the list.

What are the three most critical skills you need in your tax function for the future?

Half of Australian respondents and 42% of global respondents rank it as the most critical capability for the future – with all functions broadly aligned. This reflects a growing consensus that tax teams must not only understand the implications of AI, but actively harness it to manage risk, improve accuracy and streamline processes.

This marries with research we have conducted elsewhere. PwC Australia's 2024 Workforce Hopes & Fears Survey indicated that many workers are eager to upskill in AI, viewing it as a means to boost productivity and future-proof their careers. That increased productivity can be substantial. Our 2024 AI Jobs Barometer revealed that sectors with higher AI exposure are experiencing nearly fivefold (4.8x) greater labour productivity growth. 

Strategic thinking is the second skill on the list, where 42% of respondents highlight it as essential (compared to 38% globally). Strikingly however, there is a big difference between the responses from tax professionals and general management, with 50% of the former citing it as a top three critical skill and the latter considering it as the least important skill for the tax function (23%). This tallies with our earlier findings on business model reinvention and tax not being involved in strategic decision making. This skill is crucial for anticipating future challenges, making informed decisions and aligning tax strategies with broader business goals. 

Communication and collaboration skills also feature prominently in Australia (40% vs 34% globally). 

Curiously, specialised tax expertise (and data analysis) featured in the top three globally, but not in Australia. However, respondents in the tax function consider specialised tax expertise as critical (46%). Deep knowledge of tax laws and regulations is fundamental – especially in a country often regarded as having one of the more complex tax systems globally. 

This further reflects the perception disconnect between management and the tax function, both in terms of the strategic input required from the tax function, and the level of awareness around the growing compliance burden and operational constraints tax teams face.

Tax functions are looking for new ways to partner with advisors to bring the best expertise to their organisations in a way that is tailored to their needs. This includes bridging skills gaps with co-sourcing (partnering with an external provider to support the internal team throughout a compliance process) or outsourcing arrangements for aspects of compliance obligations. This brings in specialised expertise quickly, helping organisations to scale capabilities and stay agile without permanent headcount increases. Respondents are open to some tax activities being passed to others, but not all.

How open are you to outsourcing some or all of your tax activities in the next three years?

When it comes to preparing tax teams for the future, technology and data analytics is a universal focus. Nearly a third of Australian respondents (32%) are prioritising this area, slightly behind global (39%).

How are you preparing your tax team for the future?

Australian organisations are leaning toward bringing in new talent (38% vs 28% globally), while global counterparts are more focused on upskilling their existing teams (32% vs 18% in Australia). Australia is also focusing on training and making sure development materials are available – nearly half (48%) say they are investing heavily here, compared to just 34% globally.

The appetite for action on skill development is growing with 41% of CEOs in Australia planning to increase headcount in the coming 12 months – a signal that businesses are ready to invest in the right talent to meet the moment.

Adopting the right approach to new skills, new hires and emerging challenges is critical to the sustained success of the tax function. Fostering a culture that embraces possibility, celebrates learning and evolves its operating approach is more likely to provide a rewarding employee experience – and respond with agility to the shifting demands of their organisation and broader tax landscape.   

The message is clear: to close the gap, it’s time to get serious about skills and the employee experience.

Your next move

As tax functions face increasing demands – from compliance pressures to growing expectations around strategic contribution – the operating model that underpins them is coming under scrutiny. Around the world, tax leaders are re-evaluating how work gets done, who does it and which investments truly move the dial. Globally, the top priorities for all functions reflect a drive toward smarter, faster and more future-fit operations: leveraging new technology (47%), ensuring compliance (43%) and finding efficiencies and reducing costs (42%). In Australia, while efficiencies and cutting costs (44%) and compliance (40%) remain key concerns, the leading priority is different – 58% are focused on optimising current and future tax liabilities. This is even higher (63%) among tax professionals.

What will be the three most important priorities of your tax function in the next three years?

There’s no shortage of ambition. The second most important priority to tax professionals is wanting to leverage data more effectively (41%) – but achieving this in practice can be an ongoing challenge. Only 50% of tax professionals say they are significantly investing in automation, and only 15% of general management perceive the same. This indicates two possible scenarios: tax departments are looking to achieve their objective of optimisation through other strategies that do not require investment in technology; or there is a gap between being able to articulate the objective and executing the change needed. Meanwhile, global peers are acting, with 70% of tax functions already investing significantly in automation. This clearly demonstrates that in Australia the tax function is being ‘left behind’ in broader organisation-wide technology and finance transformation initiatives. That gap may grow more meaningful as automation and AI become table stakes for performance and scalability.

Why will you use external support for tax compliance and reporting in the next three years?

External support is emerging as a key enabler. Australian tax functions are turning to external support as a strategic resource, prioritising access to provider technology (45%), subject matter experts (36%) and help staying ahead of regulatory change (36%) – indicating a preference for targeted enablement over wholesale operational outsourcing.

‘Brand and reputation’ also features as a driver for seeking external support. The way organisations meet their compliance obligations can have a significant impact on public perception. Growing internal and external stakeholder interest in areas such as tax positions, environmental, social and governance (ESG) metrics and wage trust underscores the importance of strong, transparent compliance practices.

The findings indicate that more organisations are turning to external support in various areas. While starting with core functions like data transformation and process improvement is common, there is a significant opportunity for tax teams to play an active role in broader finance transformation initiatives. Since tax relies heavily on accurate data and effective upstream processes, this deeper collaboration helps drive standardisation across tax operations, automation of routine tasks, and reduced costs. By strengthening the core foundations, finance and tax teams working together are better positioned to secure investment, ensure compliance, and deliver a tax operating model that supports business strategy.

External support: a catalyst for AI and transformation

To what extent do your decisions about using external support and outsourcing for your tax function contribute to the overall strategic goals of your organisation in each of the following areas?

In Australia, the value of external support is most strongly linked to AI adoption and transformation (both 40%), with business strategy in general (38%) not far behind. Globally, business strategy tops the list (60%), followed by AI adoption (46%) with sustainability and transformation roughly on par (45% and 44%). This suggests a growing recognition of outsourcing as more than a cost play – it’s a way to enable innovation and future-ready capability. 

But tools and external partnerships can only take a team so far without the right structure to make them work.

With so many pathways to optimise the tax operating model – whether through team structure, governance, data or technology – it’s no surprise that deciding where to begin can be challenging. This abundance of choice can easily lead to analysis paralysis, where the sheer volume of options, combined with a shifting regulatory landscape, makes it difficult to move. But move you must. Action fuels progress, and progress opens the door to transformation.

Your next move

Australian organisations appear to be treading cautiously when it comes to technology – especially AI and automation. 

While knowledge of AI is seen as the most critical skill, only 34% of respondents saw leveraging new technology as a top 3 priority. Similarly, 42% have a markedly low expectation of how automation and GenAI can transform the tax function (global is 67%).

The result is a widening gulf in capabilities and confidence, leaving many tax teams ill-equipped to harness GenAI’s full potential.

Several factors may be contributing to this hesitation. Many inbound organisations operating in Australia may be waiting for their global tax teams to identify and implement AI or automation solutions before adopting them locally. Others may be looking to align with broader, organisation-wide AI strategies that are still in development.

It is also possible that the diversity of tasks tax handles can make it difficult to pinpoint clear use cases where automation or GenAI will deliver tangible returns. The adoption of co-sourcing for compliance can also make it harder to separate tasks. 

It’s notable that 41% of tax professionals are prioritising leveraging data more effectively – this is often seen as a necessary first step to effectively using automation and GenAI. This coupled with a robust tax risk management and governance framework will mean that they can accelerate towards their desired future state. 

Today’s extraordinary advances in AI offer immense promise for tax functions – from automating processes, reducing risk, streamlining communication, to transforming data insight and horizon scanning. AI is more than a tool for efficiency – it’s a strategic enabler for tax functions to elevate their role within the business. For example, for Fringe Benefit Tax processing use GenAI to classify different types of expenses. AI tools can also enable tax functions to analyse risk-related data and build dynamic risk profiles, resulting in more meaningful contributions to strategic conversations. But in order to capitalise on opportunities, tax data and processes must be digitally integrated across the business.

Your next move

Where to from here?

Tax functions in Australia are facing a defining moment. As organisations respond to global disruption and regulatory complexity, the case for transforming tax is stronger than ever.

Beyond keeping up with change, tax teams have an opportunity to lead it – by reframing their role and engaging more actively with the C-suite to demonstrate their strategic value. This will shift perceptions and position tax as a value-add partner in transformation and growth. 

Four questions to reflect on:

• Does our tax function have the right mix of tax, technology and data capabilities to keep pace with growing complexity – and to influence broader business decisions?
• Are we actively working to align our tax strategy with the organisation’s goals, and clearly communicating the value we bring to leadership?
• Do we have a roadmap for embedding AI and automation in ways that not only improve efficiency but support greater strategic insight?
• As leaders, are we investing in the skills and visibility needed for our teams to engage at the top table – and be seen as essential partners in transformation? 

If you are interested in reframing the tax function within your business, please reach out to your PwC contact to continue the discussion.