This bill became law on Sep 17th, 2024.
Budget, tax & economy
Large businesses covered by the new climate reporting rules get a three-year transition period with limited protection from private lawsuits.
A crisis at a clearing and settlement operatorThe company that runs a clearing and settlement facility, and the main type of operator this bill is designed to rescue or supervise in a crisis. could disrupt critical financial market services, and new climate reporting rules left big businesses needing a staged start. The bill lets the Reserve Bank support failing market infrastructure, expands ASICAustralia's corporate and markets regulator, which gets stronger powers over clearing and settlement operators in this bill. and Reserve Bank powers, and phases in climate reporting with temporary limits on private lawsuits.
Australia’s financial market infrastructureThe core systems that help financial markets work, including clearing and settlement services and similar market plumbing. was already operating under an older regulatory framework when the Council of Financial RegulatorsThe group of Australia's main financial regulators whose 2020 advice helped shape the market infrastructure reforms in this bill. issued reform advice in July 2020, and the government later folded those changes into its 14 December 2022 plan to modernise the financial system while also preparing mandatory climate reportingThe new rules requiring large entities to publish climate-related information from set start dates, beginning with the biggest businesses. for large entities. This bill responded by giving the Reserve Bank and ASICAustralia's corporate and markets regulator, which gets stronger powers over clearing and settlement operators in this bill. stronger crisis powers over clearing and settlement operators and by phasing in climate disclosures from 1 January 2025 with temporary litigation limits, before Parliament passed it in September 2024 and the new reporting start date took effect.
The main case against the bill was that its mandatory climate reportingThe new rules requiring large entities to publish climate-related information from set start dates, beginning with the biggest businesses. rules would add costly red tape, especially through scope 3 supply-chain reporting, with big companies and banks pushing compliance costs onto small businesses, farmers and eventually consumers. That criticism was pressed mainly by the Coalition and Nationals, while some crossbench supporters backed the bill overall but wanted tighter liability settings so the reporting regime did not weaken accountability.
Jim Chalmers MP introduced this bill. It passed with support from Labor, Greens, Jacqui Lambie Network, some crossbench members; opposed by Liberal Party, Nationals, One Nation.
Did it become law?
Yes
Became law 17 Sept 2024
Final passage
Recorded final vote
1 counted final-passage vote was recorded.
Passage speed
174 days
From introduction to the latest recorded parliamentary step
Meaning
Large businesses covered by the new climate reporting rules get a three-year transition period with limited protection from private lawsuits.
Australia’s biggest listed and unlisted companies and financial institutions must start mandatory climate reportingThe new rules requiring large entities to publish climate-related information from set start dates, beginning with the biggest businesses. from 1 January 2025, with other large businesses joining later in stages.
The Reserve Bank can step in when a clearing and settlement operatorThe company that runs a clearing and settlement facility, and the main type of operator this bill is designed to rescue or supervise in a crisis. is in crisis so key parts of Australia’s financial markets can keep working.
The Act lets the Reserve Bank provide up to $5 billion in emergency support to keep critical clearing and settlement services running during a crisis.
ASICAustralia's corporate and markets regulator, which gets stronger powers over clearing and settlement operators in this bill. and the Reserve Bank get stronger powers over clearing and settlement operators, including directions, rule-making, banning unsuitable people, and approval of ownership changes.
The government will also provide limited relief from private litigation for a three-year transitional period.Second reading speech
The new climate reporting requirements will commence from 1 January 2025 for Australia's biggest listed and unlisted companies and financial institutions. And other large businesses will then be phased in over time.Second reading speech
The Reserve Bank may take actions under this Part that are appropriate to manage or respond to a CS facility licensee in crisis.Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) as-passed bill text
The bill also gives the RBA the power to provide up to $5 billion in support to ensure continuity of critical clearing and settlement services if a facility faces a crisis event.Second reading speech
The new powers include notification requirements, the power to issue directions and rule-making powers for clearing and settlement facilities. It also gives them the power to ban people when they are not fit or proper or competent, and ensures that changes in control of any financial market infrastructure must be approved by either the minister or ASIC. That's the second set of changes.Second reading speech
Context
Australia’s financial market infrastructureThe core systems that help financial markets work, including clearing and settlement services and similar market plumbing. was already operating under an older regulatory framework when the Council of Financial RegulatorsThe group of Australia's main financial regulators whose 2020 advice helped shape the market infrastructure reforms in this bill. issued reform advice in July 2020, and the government later folded those changes into its 14 December 2022 plan to modernise the financial system while also preparing mandatory climate reportingThe new rules requiring large entities to publish climate-related information from set start dates, beginning with the biggest businesses. for large entities. This bill responded by giving the Reserve Bank and ASICAustralia's corporate and markets regulator, which gets stronger powers over clearing and settlement operators in this bill. stronger crisis powers over clearing and settlement operators and by phasing in climate disclosures from 1 January 2025 with temporary litigation limits, before Parliament passed it in September 2024 and the new reporting start date took effect.
Council of Financial RegulatorsThe group of Australia's main financial regulators whose 2020 advice helped shape the market infrastructure reforms in this bill. recommends stronger financial market infrastructureThe core systems that help financial markets work, including clearing and settlement services and similar market plumbing. rules
Official advice to government set out 16 recommendations for reform to strengthen oversight and crisis management for Australia’s financial market infrastructureThe core systems that help financial markets work, including clearing and settlement services and similar market plumbing..
Explanatory memorandum ↗Government announces financial system modernisation measure
The explanatory memorandum says the bill’s market infrastructure changes partly implement the Modernising Australia’s financial system measure announced on this date.
Explanatory memorandum ↗Government introduces climate reporting and market crisis bill
The Treasurer introduced the bill as a package combining mandatory climate reportingThe new rules requiring large entities to publish climate-related information from set start dates, beginning with the biggest businesses. for large businesses with a crisis regime for critical financial market infrastructureThe core systems that help financial markets work, including clearing and settlement services and similar market plumbing..
Hansard ↗Parliament passes the bill
Both houses agreed on the same text, clearing the way for the new regulator powers and staged climate disclosure timetable to become law.
Parliamentary timeline ↗Royal AssentThe final step that turns a passed bill into an Act of Parliament. turns the bill into law
Royal AssentThe final step that turns a passed bill into an Act of Parliament. completed the bill’s passage and enacted the new framework for financial market infrastructureThe core systems that help financial markets work, including clearing and settlement services and similar market plumbing. crisis management and climate reporting changes.
Parliamentary timeline ↗Mandatory climate reportingThe new rules requiring large entities to publish climate-related information from set start dates, beginning with the biggest businesses. starts for the first group of entities
The explanatory memorandum says the new requirements generally apply from financial years starting on or after this date, with obligations phased in over later years by entity size and type.
Explanatory memorandum ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second readingThe key parliamentary stage where members decide whether they support the bill in principle before detailed consideration of amendments., opening the main debate on the bill's purpose and principles.
Second readingThe key parliamentary stage where members decide whether they support the bill in principle before detailed consideration of amendments. moved
Referred to Committee (27/03/2024): Senate Economics Legislation Committee; Committee report (03/05/2024)
Referred to committee
APH bill page notesThe bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
Recorded vote: 84 to 51.
The chamber agreed to the bill at second readingThe key parliamentary stage where members decide whether they support the bill in principle before detailed consideration of amendments., meaning it accepted the bill in principle and allowed it to continue.
Second readingThe key parliamentary stage where members decide whether they support the bill in principle before detailed consideration of amendments. agreed to
The chamber considered the bill in detail and dealt with amendments before the next stage.
Consideration in detail debate
The chamber agreed to the bill at third reading, which completed passage through that chamber. Later message exchanges with the other chamber were still recorded afterwards.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second readingThe key parliamentary stage where members decide whether they support the bill in principle before detailed consideration of amendments., opening the main debate on the bill's purpose and principles.
Second readingThe key parliamentary stage where members decide whether they support the bill in principle before detailed consideration of amendments. moved
Recorded vote: 35 to 27.
The chamber agreed to the bill at second readingThe key parliamentary stage where members decide whether they support the bill in principle before detailed consideration of amendments., meaning it accepted the bill in principle and allowed it to continue.
Second readingThe key parliamentary stage where members decide whether they support the bill in principle before detailed consideration of amendments. agreed to
Recorded vote: 34 to 25.
The chamber considered amendments before the bill moved to the next stage.
Third reading agreed to :
The House dealt with Senate amendments or requests so both chambers could settle the bill in the same form. The main amendments were: Observed text changed from "Part 4—Ministerial power to approve increases in voting power in ASX Limited 122 Part 5—Approval for control of certain…" to "Part 5—Approval for control of certain Australian licensees 122 Division 1—Controlled Australian financial bodies 122 D…".
Consideration of Senate message
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal AssentThe final step that turns a passed bill into an Act of Parliament., turning the bill into an Act.
Key criticism
The main case against the bill was that its mandatory climate reportingThe new rules requiring large entities to publish climate-related information from set start dates, beginning with the biggest businesses. rules would add costly red tape, especially through scope 3 supply-chain reporting, with big companies and banks pushing compliance costs onto small businesses, farmers and eventually consumers. That criticism was pressed mainly by the Coalition and Nationals, while some crossbench supporters backed the bill overall but wanted tighter liability settings so the reporting regime did not weaken accountability.
Most criticism focused on the climate-reporting design rather than the bill's financial-crisis powers.
Compliance costs flowing to small business
Critics argued the climate disclosure regime would impose heavy compliance costs and paperwork on large firms, then pass those demands down supply chains to smaller businesses, farmers and family enterprises that lack the resources to comply easily. They warned this could squeeze margins, raise grocery and household costs, and worsen pressure on businesses already dealing with weak productivity and high operating costs.
Liability shield could weaken accountability
A narrower criticism was that the bill's temporary limits on private lawsuits, especially for transition planA company's plan for how it expects to adjust to climate risks and the net zero transition, which gets limited legal protection in the early years. statements, risked making it harder to hold companies to account for weak or misleading climate claims during the early years of the regime. Supporters of this view wanted the immunity narrowed or removed rather than rejecting mandatory disclosure itself.
Further sources
Votes
The chamber-passage votes come first. Expand a vote to see the party breakdown.
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Passed 34 to 25. Support came from Labor, Greens, Jacqui Lambie Network, and minor parties and independents. Opposition came from Liberal Party, Nationals, and One Nation.
Earlier bill-stage votes
Passed 84 to 51. Support came from Labor and Greens. Opposition came from Liberal Party and Nationals. Minor-party and independent votes were split.
Passed 35 to 27. Support came from Labor, Greens, Jacqui Lambie Network, and minor parties and independents. Opposition came from Liberal Party, Nationals, and One Nation.
Amendments grouped by chamber. These cards include amendment outcomes recorded without a counted division.
House
Defeated 51 to 84. Support came from Liberal Party and Nationals. Opposition came from Labor and Greens. Minor-party and independent votes were split.
The House rejected the proposed second-reading statement, so the bill proceeded without that criticism being adopted.
Passed 90 to 53. Support came from Labor, Greens, and Centre Alliance. Opposition came from Liberal Party and Nationals. Minor-party and independent votes were split.
This let the bill pass both houses in the same form.
The House agreed to the amendments made by the Senate, so the bill could pass both chambers in the same form.
Carried on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
Senate
Passed 35 to 27. Support came from Labor, Greens, Jacqui Lambie Network, and minor parties and independents. Opposition came from Liberal Party, Nationals, and One Nation.
The Senate agreed to the government change, tightening the bill's climate disclosure requirements.
Defeated 26 to 35. Support came from Liberal Party and Nationals. Opposition came from Labor, Greens, Jacqui Lambie Network, and minor parties and independents.
The negative vote meant those printed provisions did not stand, rather than defeating the whole government amendment package.
Defeated 26 to 35. Support came from Liberal Party and Nationals. Opposition came from Labor, Greens, Jacqui Lambie Network, and minor parties and independents.
The Senate defeated the opposition's attempt to narrow the new climate reporting regime.
Defeated 12 to 35. Support came from Greens and Jacqui Lambie Network. Opposition came from Labor, Liberal Party, and Nationals. Minor-party and independent votes were split.
The Senate rejected the Greens' attempt to keep stronger legal exposure for misleading climate-reporting statements.
Defeated 14 to 34. Support came from Greens, Jacqui Lambie Network, and minor parties and independents. Opposition came from Labor, Liberal Party, Nationals, and One Nation.
The Senate defeated the proposal, leaving the bill's transition-plan protection in place.
The APH progress record says seven government amendments were agreed on voices, without a counted division being collected by this run.
Carried on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
The Senate agreed government amendments (1) and (5) to (7) on voices before the separate vote on whether part 4 and item 127 should stand as printed.
Carried on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
This list includes amendment votes, procedural votes and votes on the bill itself.
The parliamentary record also shows 7 Government amendments agreed without a counted division.
Parliamentary debate
Start here — lead voices
Chalmers supports the bill and urges the House to pass it, arguing it will modernise Australia’s financial system and strengthen market stability while improving climate-related disclosure and investment decisions.
Read in Hansard ↗Taylor says the opposition will not support the bill because it imposes a large compliance burden, especially on small businesses, and goes too far with climate reporting and reduced parliamentary scrutiny.
Read in Hansard ↗Chaney supports the bill, saying mandatory climate risk reporting is necessary for international competitiveness and better climate disclosure.
Read in Hansard ↗Kylea Tink backs the bill's climate disclosure regime and crisis-management measures in principle, but says the modified liability settings for transition plans go too far.
Read in Hansard ↗All speeches by bloc
4 speakers · 4 support
“We urge this chamber to support the climate disclosure and financial market infrastructure reforms we are introducing today.”Read the full speech in Hansard ↗
“I rise in support of the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024. The reforms in this bill are necessary, significant and future-thinking. They focus on two key areas: mandatory climate reporting targets for large businesses and financial market infrastructure protection. These modernising reforms are important because we need to position the Australian economy for future economic opportunities, and building a more robust system is a key foundation for that.”Read the full speech in Hansard ↗
“With that contribution, I commend the legislation to the House.”Read the full speech in Hansard ↗
“We urge the House to support the climate disclosure and financial market infrastructure reforms we are introducing today.”Read the full speech in Hansard ↗
6 speakers · 6 oppose
“So Labor need to see sense here, and we've attempted with this amendment to lay out a sensible pathway forward on this—a pathway that respects the role of small businesses in our economy, that recognises they are actually the engine rooms of so many of our electorates. I know members here, when I look around, would say small businesses and farmers are the backbone. I suspect that's true of those on the other side of the chamber. I know it's true of those on the other side of the chamber. But they have never been inside the Labor tent, so they're not going to get looked after; in fact, they're going to be hit hard by this. At a time when we've seen almost 16,000 businesses go into insolvency since Labor came to power, this is the wrong law. It's the wrong law at the wrong time. We are in the midst of a cost-of-living and cost-of-doing-business crisis, and it's absolutely the last thing that is needed.”Read the full speech in Hansard ↗
“When you put it all together, I think the inclusion of scope 3 emissions and how this will filter right down from the top to the smallest business and right across the board is going to add so much cost and so many more layers of useless regulation in many terms for those small businesses that are forced to comply with it.”Read the full speech in Hansard ↗
“I am pleased that we as a coalition are opposing this bill, and we will make every effort to try and ensure that it doesn't pass this parliament, because of the cost-of-living consequences and the risk to business in an already difficult business environment where electricity costs have been going up and rent costs have been going up.”Read the full speech in Hansard ↗
“It is going to cost over $1 million for any business that does this. I'll repeat that. This was said in Senate estimates this week: it will cost over a million bucks for a business to go through this. Again, we have moved an amendment, but we will be opposing this bill without that.”Read the full speech in Hansard ↗
“This is going to drive up your cost of living. In the middle of a cost-of-living crisis, this government is going to add an extra $2.3 billion worth of red tape costs to those people in particular who are producing the food that you enjoy every day.”Read the full speech in Hansard ↗
“The coalition will be moving amendments later in this debate on this bill. If those amendments are not accepted by the House, we will oppose this bill.”Read the full speech in Hansard ↗
5 speakers · 4 support · 1 mixed
“I would like to see a change to the modified liability framework so that civil action is still available for serious misconduct to protect the intention of the bill, but this will not change my support for the bill in its current form. I commend the bill to the House.”Read the full speech in Hansard ↗
“The amendments that I will propose would remove immunity relating to transition plans while retaining the rest of the bill's modified liability regime.”Read the full speech in Hansard ↗
“We need to pass this bill and implement the changes it will bring about. Enhancing the credibility of our reporting system will bolster business and investor confidence. This is crucial for attracting increased capital investments, which in turn will accelerate our emissions reduction. This is essential for a swifter transition to a net zero economy.”Read the full speech in Hansard ↗
“I rise in support of the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024. I will focus my comments on schedule 4, which provides for the introduction of mandatory climate related financial disclosures, a positive and long-overdue reform.”Read the full speech in Hansard ↗
“I support the bill, and I will watch the government closely to ensure that they continue delivering the support farmers need to calculate and reduce their emissions. This, in turn, produces sustainable, productive and profitable food and fibre needed to feed and clothe our nation and to remain competitive in international markets.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second readingThe key parliamentary stage where members decide whether they support the bill in principle before detailed consideration of amendments. opened
A minister or sponsoring member moved the second readingThe key parliamentary stage where members decide whether they support the bill in principle before detailed consideration of amendments., opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second readingThe key parliamentary stage where members decide whether they support the bill in principle before detailed consideration of amendments. debate
The bill reached this recorded parliamentary step.
House · Referred to Federation Chamber
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
House · Returned to House for further consideration
Returned to House for further consideration
The bill reached this recorded parliamentary step.
House · Second reading debate
Second readingThe key parliamentary stage where members decide whether they support the bill in principle before detailed consideration of amendments. debate
The bill reached this recorded parliamentary step.
House · Second reading debate
Second readingThe key parliamentary stage where members decide whether they support the bill in principle before detailed consideration of amendments. debate
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Recorded vote: 84 to 51.
Second readingThe key parliamentary stage where members decide whether they support the bill in principle before detailed consideration of amendments. agreed
The chamber agreed to the bill at second readingThe key parliamentary stage where members decide whether they support the bill in principle before detailed consideration of amendments., meaning it accepted the bill in principle and allowed it to continue.
House · Consideration in detail debate
Consideration in detail
The chamber considered the bill in detail and dealt with amendments before the next stage.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second readingThe key parliamentary stage where members decide whether they support the bill in principle before detailed consideration of amendments. opened
A minister or sponsoring member moved the second readingThe key parliamentary stage where members decide whether they support the bill in principle before detailed consideration of amendments., opening the main debate on the bill's purpose and principles.
Senate · Second reading agreed to
Recorded vote: 35 to 27.
Second readingThe key parliamentary stage where members decide whether they support the bill in principle before detailed consideration of amendments. agreed
The chamber agreed to the bill at second readingThe key parliamentary stage where members decide whether they support the bill in principle before detailed consideration of amendments., meaning it accepted the bill in principle and allowed it to continue.
Senate · Amendments considered
Recorded vote: 34 to 25.
Amendment packages agreed
The chamber considered amendments before the bill moved to the next stage.
House · Consideration of Senate message
House agreed to Senate amendments
The House dealt with Senate amendments or requests so both chambers could settle the bill in the same form.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal AssentThe final step that turns a passed bill into an Act of Parliament., turning the bill into an Act.
Senate Economics Legislation Committee; Committee report (03/05/2024)
Referred to committee
Referred to Committee (27 Mar 2024): Senate Economics Legislation Committee; Committee report (3 May 2024)
APH bill page notes
