Question Time AU

Bill Debate · Second Reading

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

Senate · Monday 29 June 2026

Continued from Wednesday 11 March 2026.

Official Hansard for this day (APH) · Read this debate on OpenAustralia

At a glance

The Senate debated the Treasury Laws Amendment (Financial Reporting System Reform) Bill 2026, which proposes merging the Financial Reporting Council, the Australian Accounting Standards Board, and the Auditing and Assurance Standards Board into a single entity called External Reporting Australia. The government argued the reform would streamline reporting, enhance market integrity, and improve accountability. Opposition members opposed the bill, citing a lack of justification for dismantling a functioning system, concerns about politicisation, and fears that the changes would exacerbate shortages in the accounting profession. The Greens supported the bill but moved amendments to strengthen independence and ethics, while also calling for broader sector reforms.

Outcome

The bill was not passed; the Greens moved a second reading amendment calling for broader sector reforms, which was recorded in the debate.

Summary in reported speech - not a transcript. AI-generated, so check the official record before quoting.

How the debate unfolded

Continued the debate

Matthew Canavan (QLD) (Liberal National Party) LNP

Canavan opposed the bill, arguing there was no identifiable problem with the existing tripartite framework that required such radical restructuring. Canavan contended that consolidating oversight and standard-setting into one body appointed by a minister would unnecessarily politicise accounting standards. Canavan expressed concern that the reform served as a backdoor for environmental, social and governance standards that had previously disrupted industries such as fertiliser production. Canavan criticised the government's agreement with the Greens to exclude individuals with recent ties to major accounting firms from the new body, describing it as collective punishment that would lock out expert professionals.

Government response

Lisa Darmanin (Minister for Finance and the Public Service) ALP VIC

Darmanin supported the bill, stating it would strengthen the integrity, adaptability and accountability of Australia's economic institutions. Darmanin explained that External Reporting Australia would provide a coordinated framework for accounting, auditing, assurance and sustainability standards, ensuring information disclosed to markets is consistent and credible. Darmanin highlighted that the new structure preserves technical expertise through internal boards while improving governance and reducing duplication. Darmanin emphasised that the reforms are necessary to maintain investor confidence and ensure Australia's regulatory architecture can respond to evolving international developments.

Opposition response

Susan McDonald (Shadow Minister for Resources and Northern Australia) Nationals QLD

McDonald opposed the bill, arguing it demonstrated a misunderstanding of the complex and separate nature of accounting standards and oversight. McDonald warned that merging these bodies would remove deliberate structural separations that ensure independence. McDonald highlighted a crisis in the accounting profession, noting that expanded reporting requirements were causing firms to outsource work overseas and reducing opportunities for young Australians. McDonald cautioned against using political deals to implement rushed reforms that could have unintended consequences for the housing market and financial sector stability.