Treasury Laws Amendment (Financial Reporting System Reform) Bill 2026; Second Reading

Opened the debate

Mulino supported the bill, describing it as the most significant reform to financial reporting standards in over twenty years. Mulino argued that the legislation would establish External Reporting Australia to combine the functions of the Australian Accounting Standards Board, the Auditing and Assurance Standards Board, and the Financial Reporting Council. Mulino stated that this consolidation would enhance market integrity, investor confidence, and the ability to respond to emerging sustainability reporting needs. Mulino emphasised that the new structure would balance flexibility with the preservation of technical expertise and strengthened accountability measures.

Government response

Mulino outlined three key design principles for the new body: flexibility, preservation of expertise, and accountability. Mulino explained that a single entity would remove structural barriers and allow for future standard-setting functions to be added efficiently. Mulino noted that technical experts would continue to set standards through internal boards, while a governing council would provide oversight and ensure independence from the auditing industry. Mulino also highlighted new transparency requirements, including public meetings for discussions on standard contents.