The Government of Australia has introduced legislation to reshape the country’s financial reporting architecture.
The new legislation will merge the existing functions of the Australian Accounting Standards Board (AASB), the Auditing and Assurance Standards Board (AUASB) and the Financial Reporting Council into a single organisation.
The new body, called External Reporting Australia, will operate as a central agency responsible for setting standards across accounting, auditing and assurance, and sustainability.
In a statement, Assistant Treasurer Daniel Mulino defined it as the “most significant reform to Australia’s financial reporting standard setters in over two decades”.
He added: “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 bill was introduced following consultation with stakeholders.
According to the statement, the new framework is designed to allow quicker and more coordinated responses to emerging domestic and global developments in financial and sustainability reporting.
The bill also provides for the creation of technical standard‑setting boards within External Reporting Australia, including a dedicated board focused on sustainability reporting standards.
Existing standards issued by the current bodies will continue in force as standards of External Reporting Australia until they are reviewed, updated or replaced.
Earlier this month, CPA Australia urged the federal government to use the 2026–27 Budget to cut red tape, raise productivity and shore up Australia’s long‑term competitiveness.
“Australia introduces legislation to overhaul financial reporting framework” was originally created and published by The Accountant, a GlobalData owned brand.
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