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Season’s Reflections and a Look Ahead

Dear Clients and Friends,

As 2024 comes to a close, it offers us all a moment to reflect on a transformative year – one that tested resilience, redefined priorities, and set the stage for what lies ahead.

This year, more than any other, has underscored the interconnectedness of our world – from geopolitical tensions to technological leaps and the evolving challenges facing businesses and society.

At Andersen, we’ve observed these developments closely – not just to respond but to anticipate, innovate, and lead.

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Cameron Allen

CEO & Office Managing Director

The Economy – Complexity Meets Resilience

2024 reminded us that economic growth is rarely linear. Australia’s economy, while bolstered by infrastructure projects and energy rebates, has faced notable pressures. Declining per capita GDP highlights the real strain on households and businesses navigating persistent cost-of-living challenges.

Globally, recovery has been uneven. Trade tensions persist, supply chains remain vulnerable, and inflationary pressures are reshaping consumer and business behaviours. Meanwhile, the US presidential election outcome, with Donald Trump set to assume office in January 2025, signals potential shifts in international economic policies that will reverberate worldwide.

Yet, through these challenges, resilience has emerged. Businesses are adapting, embracing innovation, and finding opportunities in uncertainty. The Australian story is no different: a nation at the forefront of renewable energy, digital transformation, and trade diversification.

Policy, Tax, and Governance – A Year of Reform

2024 has been a transformative year in regulatory reform and governance, with significant developments shaping the tax and professional landscape:

Technology and Innovation – Building a Digital Future

2024 has also been a year of accelerated technological progress. Artificial intelligence, data analytics, and automation are no longer speculative—they are transforming industries, including ours.

At Andersen, we’ve made it a priority to explore these tools, evaluating their potential to enhance decision-making, streamline compliance, and uncover insights that drive client success. As we look ahead to 2025, our focus is on turning exploration into implementation—developing practical, ethical solutions that address complexity and create value.

Global Thought Leadership – The Andersen Institute for Finance and Economics

A highlight of 2024 has been the global launch of the Andersen Institute for Finance and Economics, underscoring Andersen’s commitment to advancing dialogue on critical issues like fiscal sustainability, inflation, and the intersection of technology and governance. Led by Fabio Natalucci, with his extensive experience at the IMF, Federal Reserve, and U.S. Treasury, the Institute brings together an advisory board featuring luminaries such as Nobel Laureate Myron Scholes and former Treasury Secretary Larry Summers. This initiative not only addresses the challenges and opportunities shaping the global economy but also aims to provide insights that benefit industries and societies at large.

What Lies Ahead in 2025

As we look to 2025, the signs point to a year of transition and potential transformation. In Australia, the possibility of an early Federal election brings with it the prospect of bold policy announcements on housing, renewable energy, nuclear energy, and infrastructure. These priorities will shape the business landscape, influencing both opportunity and risk.

Globally, businesses will continue to navigate an environment of geopolitical tension and economic realignment. If the US implements corporate tax cuts and deregulation under a Trump administration, it will attract significant global investment, creating further pressure on Australia to remain competitive. With a corporate tax rate of 30%, Australia faces the challenge of ensuring that its tax policy, investment climate, and innovation agenda keep pace with an increasingly dynamic global economy. Success in 2025 will belong to those who anticipate change, adapt with agility, and innovate with purpose.

Season’s Greetings

As we pause for the holiday season, let us celebrate the resilience, creativity, and collaboration that define this moment. On behalf of everyone at Andersen, I wish you a joyous Christmas and a prosperous New Year.

We look forward to working alongside you in 2025, helping you navigate complexity, seize opportunity, and achieve your ambitions in a world of constant evolution.

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Cameron Allen

CEO & Office Managing Director

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