This bill became law on Jul 6th, 2026.
Budget, tax & economy
Businesses, investors and government bodies will use standards overseen by one new agency, External Reporting AustraliaThe new agency responsible for reporting standards..
Daniel Mulino (Labor), the Assistant Treasurer, said the existing structure was more than two decades old and needed to respond faster to changing standards. The government said one agency would remove structural barriers while retaining specialist expertise and strengthening accountability. It also wanted a dedicated expert board for sustainability reporting — information about organisations’ environmental and related impacts.
For decades, Australia relied on separate bodies—the Financial Reporting Council (FRC), Australian Accounting StandardsRules for preparing and presenting financial information. Board (AASB) and Auditing and Assurance StandardsRules for independently checking reported information. Board (AUASB)—to oversee financial reporting standards, but their functions remained split as sustainability reporting became part of the reporting landscape. Treasury's January 2025 consultation proposed a single flexible body, and Hon Dr Daniel Mulino MP introduced the reform bill on 12 February 2026 to create External Reporting AustraliaThe new agency responsible for reporting standards.; Parliament passed it on 30 June and Royal Assent on 6 July turned it into an Act.
Pat Conaghan (Nationals) argued that the existing system was working and the government had not shown a failure that justified replacing it. He warned that putting three bodies under one governing councilThe group overseeing the new agency. could weaken the separation between oversight and technical decisions and increase perceived political influence. Barbara Pocock (Australian Greens) argued that wider reform was still needed after the PricewaterhouseCoopers tax-leak and KPMG audit scandals. She called for stronger whistleblower protection and action on all 52 recommendations from two parliamentary inquiries.
Hon Dr Daniel Mulino MP introduced this bill. It passed with support from Labor, Greens, some crossbench members; opposed by Liberal, One Nation, Nationals, Liberal Party, UAP.
Did it become law?
Yes
Became law 06 July 2026
Final passage
Recorded final vote
1 counted final-passage vote was recorded.
Passage speed
144 days
From introduction to the latest recorded parliamentary step
Meaning
Businesses, investors and government bodies will use standards overseen by one new agency, External Reporting AustraliaThe new agency responsible for reporting standards.. It replaces three existing standard-setting bodies.
People preparing financial reports will keep separate expert boards for accounting, auditing and sustainability standardsRules for reporting environmental and related impacts. within the new agency.
People following debates about new standards can watch meetings about their content because those meetings must be public.
People affected by new standards will have their likely costs and benefits considered before accounting, auditing or sustainability standardsRules for reporting environmental and related impacts. are made.
People seeking council or expert-board roles must be independent of large audit firms, with limited exceptions for New Zealand representatives.
People with ethics expertise can now qualify for the governing councilThe group overseeing the new agency. and its expert boards.
Australian organisations can keep using leading international standards when this serves the economy and the wider public interest.
The bill proposes reforms to the financial reporting architecture that will have meaningful implications for sustainability reporting in Australia. Most significantly, the bill proposes the establishment of External Reporting Australia, bringing sustainability standards setting into the same national infrastructure that governs accounting and assurance. The effect of this is that sustainability reporting will be embedded in core reporting systems, rather than treated as an adjunct. This is important because it promotes consistency and comparability, which are essential and useful ingredients fSecond reading speech
The Governing Council will create, appoint and oversee a number of internal standard setting boards that are each authorised to make and formulate specified standards. At least one board must be established for each of the three 'categories' of standards currently set by the AASB and AUASB, being accounting, auditing and assurance, and sustainability standards. The Minister will also be able to confer on ERA via legislative instrument additional functions, including for example, responsibility for formulating a new kind of standard. This will enable any future standard setting needs to be effSecond reading speech
233E Meetings relating to contents of certain standards to be held in public A meeting of the Governing Council or a standard‑setting board, or a part of one of its meetings, must be held in public if the meeting or that part of it relates to the contents of: (a) accounting standards; or (b) auditing and assurance standards; or (c) sustainability standards.Treasury Laws Amendment (Financial Reporting System Reform) Act 2026
As to sustainability reporting, embedding this within Australia's financial reporting system recognises that environmental, social and governance information is now central to business decision-making. It is critical for investors, and it is now business as usual. However, the production of reasonably practicable sustainability reporting standards is critical. We do not want reporting for reporting's sake or something that is no more than a box-checking exercise. This is why it's important that the bill provides that, prior to making or formulating a sustainability standard or in fact before mSecond reading speech
External Reporting Australia eligible representative means an individual who is not any of the following: (a) a partner in a partnership that is a prescribed auditing firm; (b) a director, secretary or senior manager of a company that is a prescribed auditing firm; (c) a former partner in a partnership that is currently a prescribed auditing firm, if the individual is receiving regular and ongoing benefits, or has within the last 6 months received a material benefit, from the partnership; (d) a former director, secretary or senior manager of a company that is currently a prescribed auditinTreasury Laws Amendment (Financial Reporting System Reform) Act 2026
(4) A person is not eligible for appointment as a Council member unless the Minister is satisfied that the person is either an External Reporting Australia eligible representative or a New Zealand Council representative, and has experience in, or knowledge of, at least one of the following fields: (aa) ethics; (a) governance; (b) business; (c) financial markets; (e) government; (f) accounting; (g) auditing; (h) sustainability or climate change; (i) science; (j) any other field the Minister considers appropriate having regard to a function of External Reporting Australia under paragraTreasury Laws Amendment (Financial Reporting System Reform) Act 2026
Manner of performing its functions (5) External Reporting Australia must, so far as is practicable, perform its functions: (a) in a manner that promotes the objects of this Part; and (b) in a manner that promotes the continued adoption of international best practice accounting standards, auditing standards and sustainability standards in the Australian standard‑setting processes, if doing so would be: (i) in the best interests of both the private and public sectors in the Australian economy; and (ii) in the public interest more broadly; and (c) with regard to the interests of AustralianTreasury Laws Amendment (Financial Reporting System Reform) Act 2026
Context
For decades, Australia relied on separate bodies—the Financial Reporting Council (FRC), Australian Accounting StandardsRules for preparing and presenting financial information. Board (AASB) and Auditing and Assurance StandardsRules for independently checking reported information. Board (AUASB)—to oversee financial reporting standards, but their functions remained split as sustainability reporting became part of the reporting landscape. Treasury's January 2025 consultation proposed a single flexible body, and Hon Dr Daniel Mulino MP introduced the reform bill on 12 February 2026 to create External Reporting AustraliaThe new agency responsible for reporting standards.; Parliament passed it on 30 June and Royal Assent on 6 July turned it into an Act.
Australia expanded the Financial Reporting Council's oversight
The reform proposals placed auditing standard-setting and auditor independence oversight alongside accounting standard-setting under the Financial Reporting Council.
Treasury ↗Treasury proposed one flexible financial reporting body
Treasury's consultation paper examined replacing the separate standard-setting arrangements with a single body able to cover accounting, auditing and sustainability reporting.
Treasury ↗Hon Dr Daniel Mulino MP introduced the reform bill
The bill responded to the split structure by proposing External Reporting AustraliaThe new agency responsible for reporting standards. as the organisation responsible for financial and sustainability standard-setting.
Hansard ↗Parliament passed the bill
Both houses passed the legislation in the same form, completing parliamentary approval for the new reporting institution.
Parliamentary timeline ↗Royal Assent created the new Act
The Governor-General's assent turned the financial reporting reform bill into law.
Parliamentary timeline ↗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 reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Considered by scrutiny committee (25/02/2026): Senate Standing Committee for the Scrutiny of Bills; Scrutiny Digest 3 of 2026
Scrutiny Digest 3 of 2026
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.
Reported from Federation Chamber
Recorded vote: 95 to 33.
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
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
Referred to Committee (05/03/2026): Senate Economics Legislation Committee; Committee report (24/04/2026)
Report tabled 24 Apr 2026
APH bill page notesThe 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 reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
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
Recorded vote: 33 to 24.
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.
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 Assent, turning the bill into an Act.
Key criticism
Pat Conaghan (Nationals) argued that the existing system was working and the government had not shown a failure that justified replacing it. He warned that putting three bodies under one governing councilThe group overseeing the new agency. could weaken the separation between oversight and technical decisions and increase perceived political influence. Barbara Pocock (Australian Greens) argued that wider reform was still needed after the PricewaterhouseCoopers tax-leak and KPMG audit scandals. She called for stronger whistleblower protection and action on all 52 recommendations from two parliamentary inquiries.
The government said specialist boards would retain technical expertise, while public meetings and stronger conflict-of-interest rules would improve accountability. The final Act also excludes people tied to large audit firms from most council and board appointments.
Independence and concentrated power
Merging separate standard-setting bodies could weaken independent oversight and leave financial reporting rules more vulnerable to ministerial influence or regulatory capture, without clear evidence that the existing bodies had failed.
Small-business compliance costs
A consolidated body could advance climate disclosure and ESG requirements that impose unaffordable compliance costs on small businesses already under financial pressure.
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 33 to 24. Support came from Labor, Greens, and minor parties and independents. Opposition came from Liberal, One Nation, Nationals, and Liberal Party.
Earlier bill-stage votes
Passed 95 to 33. Support came from Labor, Greens, and minor parties and independents. Opposition came from Liberal, Nationals, and Liberal Party.
Did not vote: LNP, Nationals
Amendments grouped by chamber. These cards include amendment outcomes recorded without a counted division.
House
Passed 91 to 48. Support came from Labor, Greens, and minor parties and independents. Opposition came from Liberal, Nationals, Centre Alliance, Community Strong Australia, and minor parties and independents.
This procedural vote ended further debate and brought the House to a decision on accepting the Senate's changes.
Passed 98 to 40. Support came from Labor, Greens, Community Strong Australia, and minor parties and independents. Opposition came from Liberal, Nationals, Centre Alliance, and LNP. Minor-party and independent votes were split.
Accepting the Senate's changes put both chambers in agreement on the bill's text, allowing it to complete parliamentary passage.
Senate
Passed 33 to 24. Support came from Labor, Greens, and minor parties and independents. Opposition came from Liberal, One Nation, Nationals, and Liberal Party.
This was a procedural vote, not a final vote on whether the bill would become law.
Passed 33 to 24. Support came from Labor, Greens, and minor parties and independents. Opposition came from Liberal, One Nation, Nationals, and Liberal Party.
This was a procedural vote, not a final vote on whether the bill would become law.
Defeated 5 to 37. Support came from One Nation and UAP. Opposition came from Labor, Greens, Liberal, and minor parties and independents.
The proposed eligibility changes were rejected, leaving those appointment provisions unchanged.
The Senate accepted, without a recorded count, a Greens call for stronger regulation, whistleblower protection and action on 52 inquiry recommendations.
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.
Parliamentary debate
Start here — lead voices
Mulino supports the bill, arguing that creating External Reporting AustraliaThe new agency responsible for reporting standards. will make financial reporting standard-setting more flexible, accountable and responsive while preserving specialist expertise.
Read in Hansard ↗Michael McCormack opposes the bill, arguing there is no evidence the existing financial reporting bodies are failing and that merging them would unjustifiably concentrate power and weaken independent oversight.
Read in Hansard ↗Jarrett supports the bill, arguing that merging the three financial reporting bodies into External Reporting AustraliaThe new agency responsible for reporting standards. will modernise an outdated system while preserving expertise, improving transparency and responding more efficiently to emerging standards.
Read in Hansard ↗Clutterham supports the bill, arguing that a unified standards body and stronger sustainability reporting will improve transparency, market integrity and investor confidence while requiring practical standards backed by cost-benefit analysis.
Read in Hansard ↗All speeches by bloc
7 speakers · 7 support
“So Australia needs a financial market that's robust, relevant and reliable. This requires a standards-setting system and reporting frameworks that are built for purpose, and this bill contributes to that. Strong, trusted reporting standards are essential to market integrity and trust. When investors trust in our market, they invest in it. It's this trust and confidence that's crucial to Australia's ongoing broader economic strength and Australia's economic growth. I commend this bill to the House.”Read the full speech in Hansard ↗
“The creation of External Reporting Australia, through the amendments set out in this bill, will strengthen the framework for setting external reporting standards and ensure those standards are meaningful, produced after a cost-benefit analysis, future focused and dedicated to providing further trust and confidence in Australia's capital markets to encourage further investment. I commend the bill to the House.”Read the full speech in Hansard ↗
“What is clear from this legislation, from the discussions we have in this place and from talking to businesses out in our community, whether they be big or small, is that, when it comes to financial reporting, people want clarity, people want stability, people want to understand what is happening and people want to know how it's happening, and that's what this bill is about. It's about making sure that, when it comes to these standards, there is a single body that allows people to understand what is being reported and how it's being reported, and to have confidence and faith in that system. The establishment of ERA based on principles of flexibility, preservation and accountability will strengthen Australia's standard-setting framework and set these systems up for growth and, importantly, for adaptation.”Read the full speech in Hansard ↗
“A competitive economy requires credible institutions. A productive economy requires coherent governance. A fair economy requires transparency and accountability. This bill advances all three objectives. It modernises Australia's financial reporting architecture. It strengthens coordination and clarity. It embeds sustainability within our core framework. It also positions Australia to remain a trusted, competitive and forward-looking participant in global markets. It is thoughtful reform, it's responsible reform, it is better targeted, it is better balanced, and it's better for Australians. I commend the bill to the House.”Read the full speech in Hansard ↗
“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 ↗
“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 ↗
“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. This reform helps ensure the governance and structural arrangements of Australia's economic institutions, and that they are best positioned to help build a more competitive, dynamic and productive economy. I commend the bill to the House.”Read the full speech in Hansard ↗
3 speakers · 3 oppose
“Importantly, no compelling case has been established that the current model is failing. I revert to Mr Lance's comment, 'If it ain't broke, don't fix it,' because it is an issue. He popularised that term in 1977, and it's true today as it was then. If it ain't broke, don't fix it. Why look at it? Why try and adjust it? Why try and amend it? Why try and fix it? If the system is working, leave it well enough alone. The coalition believes that these changes are unjustified.”Read the full speech in Hansard ↗
“Australians expect this parliament to focus on the pressures they are feeling now. In financial services, that means insurance affordability, access to banking in regional communities, protection from financial abuse and scams, and affordable financial advice. Instead, this government has prioritised restructuring institutions that have operated effectively for decades. Before dismantling this proven system, the government must answer three simple questions: What has failed? What will materially improve? Why is this urgent? Those answers have not been clearly provided. For those reasons, the coalition cannot support this bill at this time. We will seek proper scrutiny through the Senate Economics Legislation Committee, because the coalition protects our longstanding institutions. We believe in good governance and transparency, and the government simply has not made the case for reform.”Read the full speech in Hansard ↗
“I congratulate the Shadow Assistant Treasurer for his efforts in the carriage of this bill, to get it to this point. He's highlighted dramatically the consequences of what will happen if it continues to go forward, how Australians and, particularly, Australian small businesses will be crushed by the consequences of it. Of course, it may seem simple. It may seem that abolishing the Financial Reporting Council, the Australian Accounting Standards Board and the Auditing and Assurance Standards Board and replacing them with a new body called External Reporting Australia may actually have some efficiency dividend. What we know—we've seen this consistently with this government—is that it leads to regulatory capture. They get a small number of people in these organisations and they just drive up the cost on small business, which continues to get hit hard. It doesn't deliver any environmental, social or climate benefit, but it does make sure that all those small businesses just teetering on the brink—with heart, sweat and tears and finances keeping them going—are sent to the wall. And that is what is so damaging and dangerous about this bill.”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 reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading 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 · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Reported from Federation Chamber
Reported from Federation Chamber
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Recorded vote: 95 to 33.
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
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 reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
Senate · 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.
Senate · Amendments considered
Recorded vote: 33 to 24.
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 Assent, turning the bill into an Act.
Senate Standing Committee for the Scrutiny of Bills
Scrutiny Digest 3 of 2026
Considered by scrutiny committee (25 Feb 2026): Senate Standing Committee for the Scrutiny of Bills; Scrutiny Digest 3 of 2026
APH bill page notesSenate Economics Legislation Committee
Report tabled 24 Apr 2026
Referred to Committee (5 Mar 2026): Senate Economics Legislation Committee; Committee report (24 Apr 2026)
APH bill page notes
