Jo Briskey (Maribyrnong, Australian Labor Party) Share this | Hansard source

This legislation, the Treasury Laws Amendment (Financial Reporting System Reform) Bill 2026, represents an important and timely modernisation of Australia's financial system. It ensures that the institutions safeguarding market integrity are as strong, credible and forward-looking as the economy they oversee. If Australia is to remain a competitive and trusted destination for investment, our financial reporting framework must be clear, coherent and internationally respected.

In a global economy, capital does not wait. Investors compare jurisdictions, markets price risk quickly and businesses operate across borders and time zones. In that environment, transparency and consistency are not optional extras but prerequisites for confidence. Where reporting systems are fragmented or duplicative, clarity suffers. Where responsibilities overlap or strategic direction is diffused, efficiency is diminished. But where institutions are streamlined, accountable and aligned with international best practice, confidence grows. This bill is about strengthening that confidence, because confidence underpins investment productivity, retirement savings and long-term economic stability.

However, we can't discuss this reform and not acknowledge the economic inheritance this government faced. When we came to office we inherited a trillion dollars of Liberal debt, entrenched structural deficits, inflation running at elevated levels and real wages declining. Institutional drift had been allowed to persist in too many areas of economic governance. For a decade, those opposite were comfortable postponing structural reform. They focused on short-term political management rather than long-term institutional strengthening. Overlaps were tolerated. Fragmentation was accepted. Modernisation was delayed. The Liberal and National parties are reckless with the economy, and they are reckless with community safety. They are divided and dangerous, and it is always the Australian people who pay for it—they pay for their dysfunction. They, on the opposite side, are demonstrating they are far more focused on themselves and far-right ideological culture wars than they are on the cost-of-living pressures that are facing working families. They have consistently voted against policies that would take the pressure off ordinary Australians, because they are more interested in their own politics than in your household budget. They stand for higher taxes, lower wages, bigger deficits and more debt.

We have taken a different approach. We have worked hard to turn this around, and we have made real progress together. Inflation has moderated significantly from its peak, though we recognise it remains higher than we would like. Real wages are growing again. Employment remains strong. Participation is at near-record highs. Fiscal repair has progressed. And we are clear-eyed about the pressures Australians continue to face.

In my electorate of Maribyrnong, families speak to me about the price of groceries, electricity bills and mortgage repayments. Small-business owners in Flemington and Kensington talk about cost pressures and access to finance. Retirees in Gladstone Park and Avondale Heights want stability and certainty in their superannuation. Young families in Moonee Ponds are thinking about their children's future and how to make ends meet today. We know Australians are still under pressure, and that is why we are delivering real, practical and ongoing help with the cost of living, including two more tax cuts for every single Australian taxpayer—one this year and another the next. Immediate relief is what Australians need, and that is why we are strengthening Medicare, investing in skills and productivity, backing wage growth and supporting households.

But long-term economic confidence is just as vital. A resilient economy depends not only on fiscal measures but on institutional strength. It depends on credible governance. It depends on clear rules that are consistently applied. It depends on markets that operate with integrity. A strong economy needs integrity, and this bill delivers on that. Integrity in our markets is crucial because, when people trust the system to be fair and honest, they are more willing to invest, innovate, expand and plan for the future. That confidence underpins a strong economy for everyone, from global investors to local businesses to working families.

At the heart of this reform is the establishment of a new body, External Reporting Australia, ERA. ERA will bring together Australia's accounting, auditing and sustainability standard-setting functions within a single coherent institutional framework. It will serve as a one-stop shop that consolidates the functions of the Australian Accounting Standards Board, the Auditing and Assurance Standards Board and the Financial Reporting Council. These bodies have contributed greatly to the integrity of Australia's financial reporting system. They have helped to build a framework that is respected domestically and internationally. But financial markets have evolved significantly. Global supply chains are more complex. Investment flows are faster and more interconnected. Reporting expectations are increasingly international in scope. Sustainability and climate disclosures are now central to financial decision-making. In that environment, a fragmented structure is no longer the most effective way to deliver strategic coherence. ERA consolidates these standard-setting functions whilst preserving the deep technical expertise that underpins high-quality standards in this country. It reduces duplication, it strengthens coordination, it provides clearer strategic oversight, and it ensures that Australia can engage more effectively in international standard-setting processes rather than simply respond to them. This is structural reform grounded in economic reality.

A central feature of the ERA will be the establishment of dedicated technical boards, including one specifically focused on sustainability standards. This reflects a simple and widely recognised truth: climate risk is a financial risk. Investors increasingly demand consistent, reliable and comparable disclosures about how organisations manage environmental and transition risks. Superannuation funds require that information to assess long-term exposure. Banks and insurers incorporate it into risk modelling. Consumers and shareholders expect transparency about how companies are positioned in a changing global economy.

By embedding sustainability reporting within Australia's core financial reporting architecture, we ensure that these disclosures are treated as integral to financial accountability, not as optional or peripheral considerations. This positions Australia alongside other leading jurisdictions that are modernising their reporting frameworks to reflect global expectations. It provides certainty to business, it enhances investor confidence and it supports capital flowing to productive, sustainable opportunities.

The design of the ERA has been guided by three clear principles: flexibility, preserving what works and strengthening accountability. First, in regard to flexibility, we are removing structural barriers so that future standard-setting needs can be more readily accommodated. Financial markets change rapidly. The rise of digital assets, evolving global disclosure standards and technological disruption require an institutional framework that can adapt without delay. Second, in regard to preserving what works, Australia benefits from world-class accounting and auditing expertise. This reform retains dedicated technical boards and safeguards the rigour that underpins our standards. It integrates expertise within a stronger and more cohesive framework. Third, in regard to strengthening accountability, ERA will operate under workable and appropriate governance arrangements. There will be alignment between responsibility for performance and capacity to address issues when they arise. Conflicts of interest will be managed. Authority and responsibility will be clearly aligned.

This bill also addresses unnecessary overlap. ERA will not assume the Financial Reporting Council's existing role in monitoring audit quality, a function already performed by ASIC. ASIC possesses the investigative powers, compulsory mechanisms and enforcement remit necessary for that role. Clarifying responsibilities reduces duplication and enhances regulatory coherence. Without this function, ERA will be better positioned to direct its specialist resources toward its primary role of setting standards in its establishment phase.

The transition arrangements are orderly and responsible. If the bill receives royal assent before 30 June 2026, a four-month transition period will commence on that date, with External Reporting Australia beginning operations on 1 November 2026. If royal assent is received after that date, commencement will occur on the first day of the first calendar month four months after royal assent. This timeline ensures continuity of expertise and certainty for the profession and the market. Transitional provisions maintain the validity of existing standards issued by the current bodies. This is careful reform, not reckless change.

Financial Reporting standards may not dominate everyday conversations, but they underpin the confidence that allows markets to function effectively. When a worker in Essendon reviews their superannuation statement, they rely on accurate corporate disclosures. When a local business in Moonee Ponds seeks capital, lenders and investors rely on clear and consistent reporting standards. When public sector bodies publish financial statements, communities rely on integrity and transparency. Institutional quality affects economic security. Trust is foundational to economic stability. People plan for the future when the system is predictable. Businesses invest when the regulatory environment is clear. Markets allocate capital efficiently when participants have confidence that the rules are fair and consistently applied. Strong reporting standards reinforce that trust. Transparent governance enhances credibility. Clear accountability strengthens confidence.

This bill does not seek to reinvent Australia's financial system but works to strengthen it. It doesn't disregard institutional knowledge; it integrates it within a more modern and coherent structure. For the people of Maribyrnong, this reform helps ensure that the governance and structural arrangements of our economic institutions are best positioned to build a more competitive, dynamic and productive economy. This is important for retirement savings. It's important for business confidence. It's important for long-term economic security.

A competitive economy requires credible institutions. A productive economy requires coherent governance. A fair economy requires transparency and accountability. This bill advances all three objectives. It modernises Australia's financial reporting architecture. It strengthens coordination and clarity. It embeds sustainability within our core framework. It also positions Australia to remain a trusted, competitive and forward-looking participant in global markets. It is thoughtful reform, it's responsible reform, it is better targeted, it is better balanced, and it's better for Australians. I commend the bill to the House.

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