Australia's Department of the Treasury released exposure draft explanatory materials for a Treasury Laws Amendment Bill that would restructure the financial reporting system by combining the Australian Accounting Standards Board, Auditing and Assurance Standards Board and Financial Reporting Council into a single statutory body, External Reporting Australia. Treasury is seeking feedback on whether the draft explanatory material clearly explains the policy intent and operation of the proposed law. The draft would continue the Office of the Australian Accounting Standards Board as External Reporting Australia, abolish the existing boards and the Financial Reporting Council, and place governance with a Minister-appointed Governing Council of five to nine members as the accountable authority under the Public Governance, Performance and Accountability Act 2013. The Governing Council would be required to establish standard-setting boards by disallowable legislative instrument, with at least one board each for accounting, auditing and assurance, and sustainability, and no board permitted to cover more than one category. The Minister could confer additional functions (including new kinds of standards) and give binding directions on the role of international standards, while meetings dealing with the contents of standards would need to be held in public; the draft also removes the Financial Reporting Council’s audit quality advice and related mandatory information-gathering function. Commencement is proposed for the first day of the first calendar month after four months following Royal Assent, supported by transitional arrangements under which the Financial Reporting Council could take preparatory steps after Royal Assent, including establishing boards and making appointments that take effect on the External Reporting Australia start day, and extending existing appointments for Australian Accounting Standards Board and Auditing and Assurance Standards Board members until that point.
Department of Treasury (Australia) 2025-10-30
Australia's Department of the Treasury consults on draft legislation to create External Reporting Australia and consolidate standard setting across accounting auditing and sustainability
Australia's Treasury released draft materials for a bill proposing the consolidation of the Australian Accounting Standards Board, Auditing and Assurance Standards Board, and Financial Reporting Council into External Reporting Australia. It outlines governance by a Minister-appointed Governing Council and mandates separate boards for accounting, auditing, and sustainability. The proposal includes public meetings for standard discussions and removes the Financial Reporting Council’s audit quality advice function.