The federal government has released a consultation paper proposing a merger of Australia’s three financial reporting bodies into a single entity by July 2026 in an effort to promote efficiency and effectiveness.
The move will see the establishment of one body that will combine the functions of the Australian Accounting Standards Board, Auditing and Assurance Standards Board and Financial Reporting Council to oversee financial reporting and establish reporting, audit and assurance standards.
“In addition to accounting and auditing standards, this new integrated body will better support the ongoing development of climate‑related financial disclosure standards,” Assistant Treasurer and Minister for Financial Services Stephen Jones noted.
“Our standard‑setting institutions play an important role underpinning the integrity of markets and investor confidence.”
Jones emphasised it would create a one-stop shop for the development and issuance of standards, thereby enhancing regulatory consistency, reducing costs and preventing duplication in financial reporting.
The announcement was made via the release of a consultation paper through which the government is seeking stakeholder feedback on how the current reporting architecture can be improved.
The consultation period closes on 21 February.
Chartered Accountants Australia and New Zealand (CAANZ) assurance and reporting leader Amir Ghandar welcomed the release of the paper, but called for more time for public commentary.
“CAANZ supports the overall objective of creating a more flexible arrangement for standards setting to address evolving market needs,” Ghandar noted.
“However, a 30-day consultation period is not sufficient for providing feedback on the most significant overhaul of the Australian standards-setting bodies in decades.
“We are pleased to see some of our initial feedback has been considered, including the preservation of key strengths of the existing model and ensuring a diverse range of skills within the oversight body.
“There are also aspects that will need further refinement to maintain confidence, such as clarifying the demarcation between oversight and standard-setting activities, striking a balance between independence and current practical expertise, as well as clarity on how this fits and interacts with other ongoing Treasury consultation processes involving the profession.”
He indicated CAANZ will provide more detailed feedback regarding the proposed economic framework throughout the consultation period, addressing key concerns raised by its members.