The Albanese Government has today introduced legislation which will deliver the most significant reform to Australia's financial reporting standard setters in over two decades.
The new legislation establishes more adaptable and accountable standard setting through the creation of a new one stop shop, External Reporting Australia.
External Reporting Australia will combine the existing standard‑setting functions of the Australian Accounting Standards Board (AASB), Auditing and Assurance Standards Board (AUASB) and Financial Reporting Council, and be responsible for accounting, auditing and assurance, and sustainability standards.
Our standard setters play a crucial role supporting the integrity of markets, enhancing investor confidence and ensuring accountability in public sector institutions.
This reform helps ensure the governance and structural arrangements of Australia's economic institutions and structural arrangements are best positioned to help build a more competitive, dynamic and productive economy.
The legislation strengthens the existing system by better positioning it to respond to emerging developments both locally and internationally.
It provides for the establishment of technical standard‑setting boards within External Reporting Australia, including a dedicated board for developing and maintaining standards for sustainability reporting.
Existing standards will continue as standards of External Reporting Australia until updated or replaced.
The introduction of the Bill follows extensive consultation and consideration of feedback. The Government thanks all stakeholders for their constructive engagement and insights.
