Treasurer announces overhaul of AASB, AUASB and Financial Reporting Council
The government will restructure Australia’s financial reporting bodies by combining the Australian Accounting Standards Board (AASB), the Auditing and Assurance Standards Board and the Financial Reporting Council into one single entity.
Treasurer Jim Chalmers has announced that the Albanese government will restructure the nation’s financial reporting bodies to make them “more efficient’, effective and fit for purpose”.
As part of the restructure, the three bodies that currently oversee financial reporting and set reporting standards – the Australian Accounting Standards Board (AASB), the Auditing and Assurance Standards Board (AUASB) 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,” Dr Chalmers said in a public statement.
It is intended that the body will be operational on or after 1 July 2026, subject to the passage of legislation.
The Treasurer said that businesses, investors and other stakeholders would 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,” said Dr Chalmers.
“Establishing a framework for sustainability‑related financial disclosures is a key priority in the Government’s draft Sustainable Finance Strategy.”
The Treasurer said the restructuring of the nation’s financial reporting architecture is part of broader efforts to reform, renew and refocus the nation’s economic agencies.
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