Treasury Laws Amendment (Financial Reporting System Reform) Bill 2026

The PRESIDENT (18:23): I will now deal with the Treasury Laws Amendment (Financial Reporting System Reform) Bill 2026. I will first deal with the second reading amendment moved by Senator Barbara Pocock. The question is that the amendment on sheet 3784 be agreed to.

Question agreed to. The PRESIDENT: The question is that the bill be now read a second time. The PRESIDENT: I will now deal with the Committee of the Whole amendments, starting with the amendments circulated by the Australian Greens.

The question is that the amendments on sheet 3781, 3782 and 3899 be agreed to. The Australian Greens' circulated amendments— SHEET 3781 (1) Schedule 1, item 13, page 11 (before line 23), before paragraph 227A(4)(a), insert: (aa) ethics; (2) Schedule 1, item 13, page 29 (before line 23), before paragraph 231(4)(a), insert: (aa) ethics; SHEET 3782 (1) Schedule 1, item 13, page 8 (lines 1 to 6), omit paragraph 225A(5)(b), substitute: (b) in a manner that promotes the continued adoption of international best practice accounting standards, auditing standards and sustainability standards in the Australian standard-setting processes, if doing so would be: (i) in the best interests of both the private and public sectors in the Australian economy; and (ii) in the public interest more broadly; and SHEET 3899 (1) Schedule 1, item 3, page 3 (after line 24), after the definition of Council member, insert: External Reporting Australia eligible representative means an individual who is not any of the following: (a) a partner in a partnership that is a prescribed auditing firm; (b) a director, secretary or senior manager of a company that is a prescribed auditing firm; (c) a former partner in a partnership that is currently a prescribed auditing firm, if the individual is receiving regular and ongoing benefits, or has within the last 6 months received a material benefit, from the partnership; (d) a former director, secretary or senior manager of a company that is currently a prescribed auditing firm, if either of the following apply: (i) the individual is receiving regular and ongoing benefits, or has within the last 6 months received a material benefit, from the company; (ii) the individual holds shares in the company.

Note: The term prescribed auditing firm is defined by reference to the number of registered company auditors in a partnership or company. For the purposes of the definition External Reporting Australia eligible representative, it is irrelevant whether or not the individual is a registered company auditor. (2) Schedule 1, page 4 (after line 9), after item 7, insert: 7A Subsection 5(1) Insert: New Zealand board representative has the meaning given by subsection 231(7).

New Zealand Council representative has the meaning given by subsection 227A(6). (3) Schedule 1, item 9, page 4 (after line 17), after the definition of paid work, insert: prescribed auditing firm means: (a) a company that: (i) is an authorised audit company; and (ii) has more than 50 individuals who are registered company auditors and are either a director of the company or hold and beneficially own shares in the company; or (b) a partnership that is an audit firm where the partnership has more than 50 partners who are registered company auditors.

To avoid doubt, the company or partnership may include individuals or partners that are not registered company auditors (for example a partnership may have some partners who are registered company auditors that provide audit services and other partners that are not registered company auditors that provide other services). (4) Schedule 1, item 13, page 11 (line 21), after "the person", insert "is either an External Reporting Australia eligible representative or a New Zealand Council representative, and".

(5) Schedule 1, item 13, page 12 (lines 4 to 12), omit subsection 227A(5), substitute: (5) Before appointing a person as a Council member, the Minister must have regard to the principle that, so far as is practicable, the Governing Council should have an appropriate balance of expertise or experience in fields relevant to External Reporting Australia's functions.

(6) ANew Zealand Council representative means an individual: (a) appointed as the chair (or an equivalent position) of a New Zealand body (however described, including a board or committee) that has similar functions to the Governing Council; or (b) whose proposed appointment to that position in the New Zealand body has been publicly announced; or (c) who is a member of the New Zealand body and nominated by the body for the purposes of the Minister considering the member for appointment as a Council member or a Council associate member (as applicable).

(6) Schedule 1, item 13, page 14 (line 8), omit "principles", substitute "principle". (7) Schedule 1, item 13, page 17 (line 28), at the end of subsection 227M(1), add: ; or (d) in the case of a member who was appointed on the basis that the member was an External Reporting Australia eligible representative—if the member is no longer an External Reporting Australia eligible representative; or (e) in the case of a member who was appointed on the basis that the member was a New Zealand Council representative in relation to a New Zealand body—if the member is not a member of the New Zealand body.

(8) Schedule 1, item 13, page 22 (line 15), at the end of subsection 228H(1), add: ; or (d) in the case of a member who was appointed on the basis that the member was an External Reporting Australia eligible representative—if the member is no longer an External Reporting Australia eligible representative; or (e) in the case of a member who was appointed on the basis that the member was a New Zealand Council representative in relation to a New Zealand body—if the member is not a member of the New Zealand body.

(9) Schedule 1, item 13, page 29 (line 21), after "the person", insert "is either an External Reporting Australia eligible representative or a New Zealand board representative, and". (10) Schedule 1, item 13, page 30 (after line 13), at the end of section 231, add: (7) A New Zealand board representative means an individual: (a) appointed as the chair (or an equivalent position) of a New Zealand body (however described, including a board or committee) that has similar functions to the standard-setting board; or (b) whose proposed appointment to that position in the New Zealand body has been publicly announced; or (c) who is a member of the New Zealand body and nominated by the body for the purposes of the Governing Council considering the member for appointment as a board member.

(11) Schedule 1, item 13, page 36 (line 3), at the end of subsection 231K(1), add: ; or (d) in the case of a member who was appointed on the basis that the member was an External Reporting Australia eligible representative—if the member is no longer an External Reporting Australia eligible representative; or (e) in the case of a member who was appointed on the basis that the member was a New Zealand board representative in relation to a New Zealand body—if the member is not a member of the New Zealand body.