The Albanese Government has today passed legislation through the Senate that will help maximise the economic opportunities of cleaner, cheaper and more reliable energy and strengthen Australia’s financial system.
These new laws will modernise our financial system, provide greater information and clarity to investors, and incentivise investment in the net zero transformation.
The Treasury Laws Amendment (Financial Market Infrastructure and other measures) Bill puts in place two significant reforms: mandatory climate reporting requirements for big companies and new powers for regulators to protect our financial market infrastructure in the event of a crisis.
Climate reporting
After a decade of delay and denial under the Coalition, we’re taking action on climate reporting to support more investment in cheaper and cleaner energy and help companies and investors manage climate risks.
The new laws establish Australia’s climate risk disclosure framework, introducing standardised reporting requirements for businesses, to ensure they are making high quality climate related financial disclosures. The Australian Accounting Standards Board will issue internationally‑aligned standards in the near future.
These critical reforms provide investors and companies the clarity and certainty they need to support the net zero transformation and further strengthen Australia’s reputation as an attractive destination for international capital.
Reporting requirements will commence from 1 January 2025 for Australia’s largest listed and unlisted companies and financial institutions and other large businesses will be phased in over time.
Financial market infrastructure
The new laws also provide regulators with more powers to manage financial market infrastructure risks, addressing a regulatory gap and implementing recommendations of the Council of Financial Regulators.
The RBA now has powers to step in and promptly resolve a crisis at a domestic clearing and settlement facility, to ensure Australia’s critical financial market infrastructure can continue to operate.
Furthermore, ASIC and the RBA’s powers have been strengthened and streamlined, better equipping the regulators to manage risks.
Whether it’s climate disclosures, reforms to strengthen our financial system, or many of our other important changes, the Albanese Government has a broad and ambitious economic reform agenda.
Our economic reform agenda is all about maximising our advantages and building a more prosperous, productive and resilient economy, and that’s what these new laws will help deliver.