21 November 2023

Streamlining financial reporting architecture


Joint media release with
The Hon Stephen Jones MP
Assistant Treasurer and Minister for Financial Services

The Albanese Government will restructure the nation’s financial reporting bodies to make them more efficient, effective and fit for purpose, including to assist Australia in implementing new climate and sustainability standards.

The three bodies that currently oversee financial reporting and set reporting standards – the Australian Accounting Standards Board (AASB), the Auditing and Assurance Standards Board and the Financial Reporting Council – will be combined into a single entity.

In addition to accounting and auditing standards, this new integrated body will better support the ongoing implementation of climate‑related financial disclosure standards in Australia. It is intended that the body will be operational on or after 1 July 2026, subject to the passage of legislation. 

Business, investors and other stakeholders will benefit from engaging with a single entity, helping to increase regulatory consistency, reduce red tape and unnecessary costs and avoid duplication.

The Government will finalise the details of the governance arrangements for the new entity and will release draft legislation for public consultation, including appropriate transitional arrangements.

Ahead of the body’s formation, the AASB will continue to progress its work in relation to climate‑related financial disclosure standards. Establishing a framework for sustainability‑related financial disclosures is a key priority in the Government’s draft Sustainable Finance Strategy.

The streamlining of the nation’s financial reporting architecture is part of our broader efforts to reform, renew and refocus the nation’s economic agencies.

The Albanese Government is committed to ensuring we have the right leadership, structures and processes in place at our key economic institutions to meet current and future challenges.