The Albanese Government is advancing the next phase of reforms to strengthen Australia's financial reporting system, delivering more adaptable and future ready standard setting arrangements.
Consultation opens today on draft amendments to the Australian Securities and Investments Commission Act 2001 which will combine the existing bodies into a single entity.
External Reporting Australia (ERA) will be established as the new body, responsible for the setting of accounting, auditing and assurance, and sustainability standards.
The new body combines the functions and powers of the Australian Accounting Standards Board, the Auditing and Assurance Standards Board and the Financial Reporting Council.
To maintain Australia's position as an attractive destination for international investment, it is essential that our institutional framework for standard setting remains aligned with global developments and is responsive to emerging challenges.
The draft legislation reflects feedback from stakeholders on the model proposed in the consultation paper released in January. It is guided by three core principles: ensuring flexibility, strengthening accountability, and preserving existing strengths.
The establishment of External Reporting Australia will play a key role in supporting investor confidence and the continued integrity of Australia's capital markets.
Consultation on the draft legislation and explanatory materials is now open on the Treasury website. Submissions can be made until 27 November 2025.
