BCSDA welcomes introduction of Financial Reporting System Reform Bill 2026

Sydney, 13 February 2026 – The Business Council for Sustainable Development Australia (BCSDA) today welcomed the introduction of the Treasury Laws Amendment (Financial Reporting System Reform) Bill 2026, marking an important step in embedding sustainability reporting within Australia’s core financial reporting framework.

The Bill proposes reforms to the financial reporting architecture that will have meaningful implications for sustainability reporting in Australia. Significantly, it proposes the establishment of External Reporting Australia, bringing sustainability standard-setting into the same national infrastructure that governs accounting and assurance. This aligns with BCSDA’s position that sustainability reporting should be embedded in core reporting systems rather than treated as an adjunct, supporting consistency, comparability and decision usefulness for investors and other stakeholders.

In addition, the Bill signals an important focus on capability and transparency. The proposed Governing Council is required to include skills in sustainability or climate change, including scientific expertise, strengthening the technical credibility of standard-setting. Requirements for meetings in which standards are discussed to be held in public improve visibility for preparers and help reduce the risk of late-stage requirements. The Bill also supports continuity and certainty as reforms take effect. Maintaining robust due process and early consultation will remain critical to ensure standards are practical to implement and support high-quality reporting—particularly for data systems, controls and assurance readiness.

BCSDA CEO Andrew Petersen said the Bill sends an important signal for businesses preparing for mandatory sustainability reporting.

“Embedding sustainability reporting within Australia’s financial reporting system recognises that environmental, social and governance information is now central to business decision-making. The measures proposed in this Bill strengthen capability and transparency—and underscore the importance of standards that are workable in practice and supported by robust data, controls and assurance pathways,” Petersen said.

The Bill will now proceed through the Parliamentary process, including potential committee consideration. Subject to passage, commencement is expected to align with broader reforms to Australia’s financial reporting system.

BCSDA will continue to engage constructively on the reforms and encourages members to share implementation insights to support effective, high-quality sustainability reporting.

ENDS

About BCSDA

The Business Council for Sustainable Development Australia (BCSDA) is a non-profit organisation dedicated to operationalising sustainable development practices among Australian businesses. BCSDA was established in Australia in 1991 and works with over 70 leading global businesses and other organisations to drive systemic transformation in key sectors, advocating for sustainable leadership and rewarding action through education, partnerships, and policy influence.

In 2014 the organisation was appointed Australia’s Network Partner for World Business Council for Sustainable Development (WBCSD).

BCSDA’s members believe that by integrating social and environmental impacts with financial results, business lowers its risk profile, makes better decisions and creates the solutions needed to meet the Sustainable Development Goals.

BCSDA’s members include leading Australian businesses, from all sectors, who share a commitment to economic, environmental and social development. It represents member companies, public sector enterprises and institutions, and community organisations, which in turn represent 120,000+ Australian employees. www.bcsda.org.au 

For further information contact: Andrew Petersen, CEO, Business Council for Sustainable Development Australia, +61 412 545 994