Case for reform not proven
Coalition speakers said the existing accounting and auditing standard-setting bodies were respected and working, and argued the government had not identified a systemic failure that justified abolishing them.
Treasury Laws Amendment (Financial Reporting System Reform)
Current status
This bill is currently before Parliament.
Policy area
Budget, tax & economy
What does this bill do?
Creates External Reporting AustraliaThe new body the bill would create to set accounting, auditing and assurance, and sustainability standards. by merging the Financial Reporting CouncilThe current oversight body for Australia's financial reporting standard-setting system. The bill would abolish it and move its relevant functions into External Reporting Australia., the Australian Accounting Standards BoardThe current body responsible for Australian accounting standards. The bill would merge its functions into External Reporting Australia. and the Auditing and Assurance Standards BoardThe current body responsible for auditing and assurance standards. The bill would merge its functions into External Reporting Australia., including their offices, into one financial reporting standard-setting body.
Why was it introduced?
The government introduced the bill to consolidate Australia's financial reporting standard setters after work on climate-related financial disclosure raised questions about whether the existing institutional structure was flexible enough. The explanatory memorandum says the reform is intended to support a dedicated sustainability standardsReporting standards about sustainability-related information, such as climate-related disclosures, that investors and other users may rely on alongside financial information. board, preserve technical expertise, and give the system a structure that can respond to future standard-setting needs.
Broader context
The bill sits in a longer shift from traditional financial reporting toward wider external reporting, including climate and sustainability information. The government had already sought feedback on institutional options in 2022 and announced in November 2023 that it would combine the existing accounting, auditing and financial reporting oversight bodies. By 2025 it had consulted on a model for External Reporting AustraliaThe new body the bill would create to set accounting, auditing and assurance, and sustainability standards., then introduced this bill to create the new body and manage the transition from the existing standard setters.
Key criticism
Opposition speakers did not dispute that accounting and auditing standards matter, but argued the government had not made the case for abolishing the existing bodies. Their main concerns were concentration of power in a single entity, possible weakening of independent technical standard setting, and whether this reform should take priority over more immediate financial-services pressures.
Who supported it?
Hon Dr Daniel Mulino MP introduced this bill. Supportive speeches so far have come from Labor.
Introduced in House 12 Feb 2026
Passed House 05 Mar 2026
At second reading in Senate 11 Mar 2026
Not yet law —
Did it become law?
Not yet
Final passage
No final vote yet
The bill has not yet completed passage through Parliament.
Days since introduction
118 days
Updated 10 June 2026.
Meaning
What does this bill do?
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Creates External Reporting AustraliaThe new body the bill would create to set accounting, auditing and assurance, and sustainability standards. by merging the Financial Reporting CouncilThe current oversight body for Australia's financial reporting standard-setting system. The bill would abolish it and move its relevant functions into External Reporting Australia., the Australian Accounting Standards BoardThe current body responsible for Australian accounting standards. The bill would merge its functions into External Reporting Australia. and the Auditing and Assurance Standards BoardThe current body responsible for auditing and assurance standards. The bill would merge its functions into External Reporting Australia., including their offices, into one financial reporting standard-setting body.
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Gives External Reporting AustraliaThe new body the bill would create to set accounting, auditing and assurance, and sustainability standards. responsibility for accounting standards, auditing and assurance standards, and sustainability standardsReporting standards about sustainability-related information, such as climate-related disclosures, that investors and other users may rely on alongside financial information..
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Sets up a governing councilThe main governing body of External Reporting Australia. It would be responsible for the organisation's performance, resources, priorities and standard-setting structure. for External Reporting AustraliaThe new body the bill would create to set accounting, auditing and assurance, and sustainability standards. and requires it to create specialist standard-setting boards, including separate boards for accounting, auditing and assurance, and sustainability standardsReporting standards about sustainability-related information, such as climate-related disclosures, that investors and other users may rely on alongside financial information..
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Allows the minister to give External Reporting AustraliaThe new body the bill would create to set accounting, auditing and assurance, and sustainability standards. extra standard-setting functions by legislative instrumentA legal instrument made under an Act of Parliament. On this page, it matters because several ministerial or governing-council powers would be exercised in a form that can be scrutinised under legislation rules., so the system can respond to new kinds of reporting standards in the future.
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Adds governance safeguards, including public meetings when standard content is discussed, conflict-of-interest rules, a code of conduct, and special voting requirements if the governing councilThe main governing body of External Reporting Australia. It would be responsible for the organisation's performance, resources, priorities and standard-setting structure. intervenes directly in standard setting.
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Provides transition rules so existing standards, staff, consultants, records and references to the old bodies can move into the new External Reporting AustraliaThe new body the bill would create to set accounting, auditing and assurance, and sustainability standards. structure.
Show source excerpts
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The Bill amends the Act to merge the FRC, the AASB and the AUASB (including the Offices) into a new body, named External Reporting Australia, with responsibility for performing core financial reporting and sustainability standard-setting functions.
Treasury Laws Amendment (Financial Reporting System Reform) explanatory memorandum -
External Reporting Australia’s responsibilities include making and formulating accounting, auditing and assurance, and sustainability standards.
Treasury Laws Amendment (Financial Reporting System Reform) explanatory memorandum -
The Governing Council must establish at least one board for each of the three ‘categories’ of standards the legislation empowers External Reporting Australia to make and formulate: accounting, auditing and assurance, and sustainability standards.
Treasury Laws Amendment (Financial Reporting System Reform) explanatory memorandum -
The Minister may also give External Reporting Australia additional functions, for example, the function of formulating a new kind of standard.
Treasury Laws Amendment (Financial Reporting System Reform) explanatory memorandum -
The requirement that meetings (or parts of meetings) of both the Governing Council and standard-setting boards must be held in public if they concern the contents of particular standards – ensuring transparency around the standard-setting process.
Treasury Laws Amendment (Financial Reporting System Reform) explanatory memorandum -
The amendments ensure that any staff of the Office of the AASB and Office of the AUASB employed immediately before the External Reporting Australia start day are taken to be staff of External Reporting Australia on and after the External Reporting Australia start day, on the same terms and conditions.
Treasury Laws Amendment (Financial Reporting System Reform) explanatory memorandum
Context
Broader context for this bill
The bill sits in a longer shift from traditional financial reporting toward wider external reporting, including climate and sustainability information. The government had already sought feedback on institutional options in 2022 and announced in November 2023 that it would combine the existing accounting, auditing and financial reporting oversight bodies. By 2025 it had consulted on a model for External Reporting AustraliaThe new body the bill would create to set accounting, auditing and assurance, and sustainability standards., then introduced this bill to create the new body and manage the transition from the existing standard setters.
- December 2022
Government seeks feedback on standard-setting structure
The explanatory memorandum says feedback was sought on structural options for setting standards to support climate-related financial disclosure requirements.
Treasury Laws Amendment (Financial Reporting System Reform) explanatory memorandum ↗ - 21 Nov 2023
Government announces plan to combine reporting bodies
The explanatory memorandum says the bill was announced by the Treasurer and then Assistant Treasurer on 21 November 2023. The proposal was to bring the existing accounting, auditing and financial reporting oversight bodies into a single entity.
Treasury Laws Amendment (Financial Reporting System Reform) explanatory memorandum ↗ - 2024
Climate reporting becomes a live standard-setting pressure
Public reporting at the time described new climate-related reporting requirements as part of a framework that would cover large companies and organisations, adding practical pressure for sustainability standardsReporting standards about sustainability-related information, such as climate-related disclosures, that investors and other users may rely on alongside financial information. and assurance settings.
Australian Financial Review ↗ - January 2025
Treasury consults on the External Reporting AustraliaThe new body the bill would create to set accounting, auditing and assurance, and sustainability standards. model
The government released a consultation paper for a combined body that would take over key standard-setting, international engagement, strategic advice and reporting functions from the existing bodies.
Treasury Laws Amendment (Financial Reporting System Reform) explanatory memorandum ↗ - October to November 2025
Exposure draft legislation is released
Treasury conducted further consultation on exposure draft legislation and explanatory materials. The explanatory memorandum says feedback was received from accounting bodies, accountants, industry associations, sustainability experts, academics and investor representatives.
Treasury Laws Amendment (Financial Reporting System Reform) explanatory memorandum ↗ - 12 Feb 2026
Financial reporting reform bill is introduced
Assistant Treasurer Daniel Mulino introduced the bill in the House of Representatives, describing it as the biggest reform to Australia's financial reporting standard-setting institutions in more than two decades.
Minister's second reading speech ↗
Legislative route
How did it move through Parliament?
House Senate
Introduced 12 Feb 2026
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
Second reading opened 12 Feb 2026
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Second reading debate 03 Mar 2026
The bill reached this recorded parliamentary step.
Sent to Federation Chamber for debate 03 Mar 2026
The bill reached this recorded parliamentary step.
Referred to Federation Chamber
Second reading debate 04 Mar 2026
The bill reached this recorded parliamentary step.
Returned from Federation Chamber 05 Mar 2026
The bill reached this recorded parliamentary step.
Reported from Federation Chamber
House second reading agreed 05 Mar 2026
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
House third reading agreed 05 Mar 2026
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Economics Legislation Committee; Committee report (24/04/2026) review 05 Mar 2026
The bill was referred to the Senate Economics Legislation Committee, with the APH bill record linking to the committee inquiry and noting a report date of 24 April 2026.
Referred to committee
APH bill page notesIntroduced 11 Mar 2026
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
Second reading opened 11 Mar 2026
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Key criticism
The main case against this bill
Opposition speakers did not dispute that accounting and auditing standards matter, but argued the government had not made the case for abolishing the existing bodies. Their main concerns were concentration of power in a single entity, possible weakening of independent technical standard setting, and whether this reform should take priority over more immediate financial-services pressures.
Government speakers argued the bill preserves technical expertise through specialist boards and adds transparency, conflict-of-interest and public-meeting safeguards.
Concentration of power
Pat Conaghan argued that replacing separate statutory bodies with one consolidated entity could reduce separation between oversight and technical standard setting, increase governing-council influence and create real or perceived risks to independence.
Regulatory burden and priorities
Tim Wilson linked the bill to broader concerns that reporting and climate-disclosure rules can be designed around large-business compliance capacity, while small businesses face rising costs and limited specialist support.
Further sources
Votes
Recorded votes
No recorded votes have been found yet for this bill.
Parliamentary debate
Who spoke, and what they said
Start here — lead voices
Sponsor speech Supports
Daniel Mulino
Daniel Mulino supports the bill as a major restructuring of Australia's financial reporting standard setters.
Read in Hansard ↗ Lead opposing voice Opposes
Michael McCormack
Michael McCormack opposes the bill, describing it as unnecessary bureaucratic expansion.
Read in Hansard ↗ Lead voice Supports
Madonna Jarrett
Madonna Jarrett supports the bill, explaining that accounting, auditing and assurance standards affect investors, businesses and superannuation savings.
Read in Hansard ↗ Lead voice Supports
Claire Clutterham
Claire Clutterham supports the bill, stressing that it embeds sustainability reporting in Australia's core financial reporting framework.
Read in Hansard ↗All speeches by bloc
Labor
7 speakers · 7 support
Labor
7 speakers · 7 support
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Madonna Jarrett ★ Madonna Jarrett supports the bill, explaining that accounting, auditing and assurance standards affect investors, businesses and superannuation savings.
“Basically, audit and assurance mean that an investor doesn't need to take the company's word for it before they put their hard-earned savings into that business.”
Read the full speech in Hansard ↗ -
Claire Clutterham ★ Claire Clutterham supports the bill, stressing that it embeds sustainability reporting in Australia's core financial reporting framework.
“I rise today to speak in support of the Treasury Laws Amendment (Financial Reporting System Reform) Bill 2026, which represents the biggest reform to Australian financial reporting standard settings in 20 years, and, critically, it marks an important step in embedding sustainability reporting within Australia's core financial reporting framework.”
Read the full speech in Hansard ↗ -
Julie-Ann Campbell Julie-Ann Campbell supports the bill, presenting External Reporting AustraliaThe new body the bill would create to set accounting, auditing and assurance, and sustainability standards. as a clearer and more accountable standard-setting structure.
“Instead of navigating multiple agencies and processes, ERA creates a clear one-stop shop for guidance, oversight and decision-making.”
Read the full speech in Hansard ↗ -
Jo Briskey Jo Briskey supports the bill as a modernisation of Australia's financial reporting framework.
“A competitive economy requires credible institutions. A productive economy requires coherent governance.”
Read the full speech in Hansard ↗ -
Anthony Chisholm Anthony Chisholm moves the bill's second reading in the Senate and incorporates the government's second reading speech.
“The creation of ERA through the amendments set out in the Bill will strengthen Australia's institutional arrangements for setting external reporting standards and ensure they are best positioned for the future.”
Read the full speech in Hansard ↗ -
Daniel Mulino ★ Daniel Mulino supports the bill as a major restructuring of Australia's financial reporting standard setters.
“The creation of ERA through the amendments set out in the bill will strengthen Australia's institutional arrangements for setting external reporting standards and ensure they are best positioned for the future.”
Read the full speech in Hansard ↗ -
Ali France Ali France supports the bill, saying it delivers the government's commitment to streamline financial reporting bodies.
“The transitional provisions in the bill will facilitate an orderly process, minimising disruption to the current standard-setting board's ongoing work and providing greater certainty around statutory roles ahead of commencement.”
Read the full speech in Hansard ↗
Coalition
3 speakers · 3 oppose
Coalition
3 speakers · 3 oppose
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Michael McCormack ★ Michael McCormack opposes the bill, describing it as unnecessary bureaucratic expansion.
“The coalition does not support reform for reform's sake. We never have and never will.”
Read the full speech in Hansard ↗ -
Pat Conaghan Pat Conaghan opposes the bill in its current form.
“One of the central concerns by stakeholders with this bill is the concentration of power. Currently, authority is distributed across three bodies.”
Read the full speech in Hansard ↗ -
Tim Wilson Tim Wilson opposes the bill in its current form, linking it to broader concerns about regulatory burden on small business.
“The problem with this Labor government is they design all law on the basis that every small business, every corner store and every wonderful, hardworking Australian who wants to set up a home business has, sitting behind them, an HR department, a tax and legal department and a regulatory compliance department when, in fact, they don't.”
Read the full speech in Hansard ↗
Record
Full record
- Status
- Before Senate -- Collected from the APH bill page.
- Originating house
- House of Representatives
- 12 Feb 2026
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.
- 12 Feb 2026
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
- 03 Mar 2026
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
- 03 Mar 2026
House · Referred to Federation Chamber
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
- 04 Mar 2026
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
- 05 Mar 2026
House · Reported from Federation Chamber
Reported from Federation Chamber
The bill reached this recorded parliamentary step.
- 05 Mar 2026
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
- 05 Mar 2026
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
- 11 Mar 2026
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.
- 11 Mar 2026
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate Economics Legislation Committee; Committee report (24/04/2026)
Referred to committee
The bill was referred to the Senate Economics Legislation Committee, with the APH bill record linking to the committee inquiry and noting a report date of 24 April 2026.
Referred to Committee (5 Mar 2026): Senate Economics Legislation Committee; Committee report (24 Apr 2026)
APH bill page notes