Treasury Laws Amendment (Financial Reporting System Reform) Act 2026 (61 of 2026)
Schedule 1 Financial reporting system reform
Part 2 Transitional provisions
Australian Securities and Investments Commission Act 2001
18 In the appropriate position
Insert:
Part 43 - Transitional provisions relating to Schedule 1 to the Treasury Laws Amendment (Financial Reporting System Reform) Act 2026
Division 1 - Preliminary
348 Definitions
In this Part:
amended Act means this Act as in force immediately after the start of the External Reporting Australia start day.
External Reporting Australia start day means the day on which Part 1 of Schedule 1 to the Treasury Laws Amendment (Financial Reporting System Reform) Act 2026 commences.
old Act means this Act as in force immediately before the External Reporting Australia start day.
rules means the rules made under subsection 365(1).
transition period means the period:
(a) starting on the day this Part commences; and
(b) ending on the day before the External Reporting Australia start day.
Division 2 - Matters relating to the transition period
349 Exercise of certain powers by the Financial Reporting Council during the transition period
(1) This section applies to the following powers:
(a) a power to make an instrument that will be conferred on the Governing Council of External Reporting Australia under the following provisions of the amended Act:
(i) section 230 (establishment of standard-setting board);
(ii) section 231 (appointments to standard-setting board);
(iii) section 231A (Chair of a standard-setting board);
(iv) section 231B (Deputy Chair of a standard-setting board);
(v) subsection 231E(4) (remuneration of board members generally);
(vi) section 231F (remuneration of certain board members);
(b) any power to vary or revoke an instrument mentioned in paragraph (a) as a result of the operation of subsection 33(3) of the Acts Interpretation Act 1901.
(2) For the purposes of the application of section 4 of the Acts Interpretation Act 1901 to the exercise of a power mentioned in subsection (1) during the transition period, the power may be exercised by the Financial Reporting Council as if it were a power conferred on the Financial Reporting Council by this Act.
(3) An instrument made by the Financial Reporting Council in reliance on this section and section 4 of the Acts Interpretation Act 1901 is, after the end of the transition period, taken to have been (and may be dealt with as if it had been) made by the Governing Council of External Reporting Australia.
350 Ensuring appropriate standard-setting boards are established etc.
(1) The Financial Reporting Council must take all reasonable steps to ensure that, through the exercise of powers mentioned in section 349, standard-setting boards are to be established on the External Reporting Australia start day in a manner consistent with External Reporting Australia's duty under subsection 230A(2) of the amended Act.
(2) The Financial Reporting Council has the functions of establishing standard-setting boards as mentioned in section 230 of the amended Act, and making appointments in relation to those boards, in addition to its other functions under this Act.
351 Extension of appointment - members of the Australian Accounting Standards Board and Auditing and Assurance Standards Board
(1) This section applies in relation to the following:
(a) the appointment of a member of the Australian Accounting Standards Board (including the Chair);
(b) the appointment of a member of the Auditing and Assurance Standards Board (including the Chair).
(2) If, apart from this section, the appointment would cease to have effect (other than under section 236C or 236G) at any time in the transition period, the appointment is extended until the earliest of the following:
(a) the end of the transition period;
(b) in relation to a member of the Australian Accounting Standards Board:
(i) if the member gives a resignation under section 236C - the time when that resignation takes effect;
(ii) if the extended appointment is terminated under that section - the time when that termination takes effect;
(c) in relation to a member of the Auditing and Assurance Standards Board:
(i) if the member gives a resignation under section 236G - the time when that resignation takes effect;
(ii) if the extended appointment is terminated under that section - the time when that termination takes effect.
Division 3 - Administrative matters relating to External Reporting Australia
352 Members of the Financial Reporting Council
(1) This section applies to a person who was, immediately before the External Reporting Australia start day, holding office as a member of the Financial Reporting Council (including as the Chair).
(2) The person is taken, on and after the External Reporting Australia start day, to have been appointed as a member of the Governing Council of External Reporting Australia under section 227A of the amended Act:
(a) for the balance of the person's term of appointment that remained immediately before that day; and
(b) on terms and conditions (including remuneration) that are equal to, or better than, the terms and conditions that applied to the person immediately before that day; and
(c) for the person holding office as the Chair of the Financial Reporting Council - as the Chair of the Governing Council of External Reporting Australia.
Note: The person's remuneration will not be better than their remuneration as a member of the Financial Reporting Council under section 235A of the old Act unless a higher level of remuneration is determined by the Remuneration Tribunal.
353 Staff
(1) This section applies to a person who, immediately before the External Reporting Australia start day:
(a) was a member of the staff of the Office of the Australian Accounting Standards Board under section 235E of the old Act; or
(b) was a member of the staff of the Office of the Auditing and Assurance Standards Board under 236DC of the old Act.
(2) If the person was a member of staff engaged under the Public Service Act 1999, the person is taken, on and after the External Reporting Australia start day, to be engaged as a member of the staff of External Reporting Australia under paragraph 232(1)(a) of the amended Act on the same terms and conditions.
(3) Otherwise, the person is taken, on and after the External Reporting Australia start day, to be employed as a member of the staff of External Reporting Australia under paragraph 232(1)(b) of the amended Act on the same terms and conditions.
(4) The repeal of sections 235E and 236DC of the old Act does not affect the continuity of employment of the person.
354 Consultants
(1) This section applies to a person who, immediately before the External Reporting Australia start day, was:
(a) engaged to perform services for the Office of the Australian Accounting Standards Board under subsection 235F(1) of the old Act; or
(b) engaged to perform services for the Office of the Auditing and Assurance Standards Board under subsection 236DD(1) of the old Act.
(2) The person is taken, on and after that day, to be engaged by External Reporting Australia under section 232A of the amended Act on the same terms and conditions.
355 Persons assisting
(1) A person whose services were available to the Office of the Australian Accounting Standards Board under subsection 235F(3) of the old Act immediately before the External Reporting Australia start day is taken on and after that day to be a person whose services are made available to External Reporting Australia under section 232B of the amended Act on the same terms and conditions.
(2) A person whose services were available to the Office of the Auditing and Assurance Standards Board under subsection 236DD(3) of the old Act immediately before the External Reporting Australia start day is taken on and after that day to be a person whose services are made available to External Reporting Australia under section 232B of the amended Act on the same terms and conditions.
356 Transfer of records
(1) Records and documents covered by subsection (2) or (3) are to be transferred to External Reporting Australia on or after the External Reporting Australia start day.
Note: Any records and documents transferred are Commonwealth records for the purposes of the Archives Act 1983.
(2) This subsection covers any records or documents that were in the possession of the following immediately before the External Reporting Australia start day:
(a) the Financial Reporting Council;
(b) the Australian Accounting Standards Board;
(c) the Office of the Auditing and Assurance Standards Board;
(d) the Auditing and Assurance Standards Board.
Note: The Office of the Australian Accounting Standards Board is continued in existence as External Reporting Australia by subsection 225(1) of the amended Act.
(3) This subsection covers any records or documents that:
(a) were in the possession of the Department immediately before the External Reporting Australia start day; and
(b) were received by, or brought into existence by, the Department for the dominant purpose of performing secretariat functions for the Financial Reporting Council.
357 Additional information to be included in the Governing Council's first annual report
(1) This section applies to the first annual report prepared by the Governing Council under section 46 of the Public Governance, Performance and Accountability Act 2013.
(2) The report must, for any part of the reporting period (within the meaning of that Act) before the External Reporting Australia start day, include:
(a) the matters that would have been included in an annual report under section 235B of the old Act had that section not been repealed; and
(b) the matters that would have been included in an annual report for the Office of the Auditing and Assurance Standards Board under section 46 of the Public Governance, Performance and Accountability Act 2013.
358 Corporate plans
(1) A corporate plan for the body continued (or to be continued) in existence as External Reporting Australia is not required to be prepared, given or published for a reporting period for the body until it is reasonably practicable to do so after the External Reporting Australia start day if:
(a) the External Reporting Australia start day occurs (or is to occur) during the reporting period; and
(b) as at the start of the transition period, a corporate plan for the body for the reporting period has not yet been prepared.
(2) A corporate plan for the Office of the Auditing and Assurance Standards Board is not required to be prepared, given or published for a reporting period for the Office if:
(a) the External Reporting Australia start day is to occur during the reporting period; and
(b) as at the start of the transition period, a corporate plan for the Office for the reporting period has not yet been prepared.
(3) This section has effect despite:
(a) section 35 of the Public Governance, Performance and Accountability Act 2013; and
(b) any rules made for the purposes of that section.
(4) In this section:
corporate plan means a corporate plan under section 35 of the Public Governance, Performance and Accountability Act 2013.
reporting period has the same meaning as in the Public Governance, Performance and Accountability Act 2013.
359 Application provision - disclosure of information
Section 234B of the amended Act applies in relation to the disclosure of information on or after the External Reporting Australia start day, whether the information was given (or is taken to have been given) to External Reporting Australia before, on or after that day.
Division 4 - Certain instruments and standards, and things done by bodies, etc.
360 Transitional - references to bodies in instruments
(1) This section applies to an instrument (other than an instrument of appointment) if:
(a) the instrument was in force immediately before the External Reporting Australia start day; and
(b) the instrument contains a reference to:
(i) the Financial Reporting Council; or
(ii) the Australian Accounting Standards Board; or
(iii) the Auditing and Assurance Standards Board; or
(iv) the Office of the Auditing and Assurance Standards Board.
Note: See section 25B of the Acts Interpretation Act 1901 in relation to references to the Office of the Australian Accounting Standards Board.
(2) The instrument has effect, on and after the External Reporting Australia start day, as if the reference were a reference to External Reporting Australia.
(3) The rules may provide that subsection (2) does not apply in relation to a specified instrument.
(4) This section does not prevent the instrument from being amended or repealed on or after the External Reporting Australia start day.
361 Things done by, or in relation to, bodies
(1) If, before the External Reporting Australia start day, a thing was done by, or in relation to, a body mentioned in subsection (2), then the thing has effect, on and after that day, as if it had been done by, or in relation to, External Reporting Australia.
(2) The bodies are the following:
(a) the Financial Reporting Council;
(b) the Australian Accounting Standards Board;
(c) the Auditing and Assurance Standards Board;
(d) the Office of the Auditing and Assurance Standards Board.
(3) Subsection (1) does not apply to the making of an instrument under section 349.
(4) The rules may provide that subsection (1) does not apply in relation to a specified thing done by, or in relation to, a specified body.
362 Continuation of certain standards formulated by the Australian Accounting Standards Board and the Auditing and Assurance Standards Board
A standard in force for the purposes of paragraph 227(1)(c) or (ca) or 227B(1)(b) of the old Act immediately before the External Reporting Australia start day continues in force (and may be dealt with) on and after that day as if it were a standard formulated by External Reporting Australia for the purposes of subparagraph 225A(1)(b)(iii) of the amended Act.
Note: For the continuation of standards made under the Corporations Act 2001, see section 1737 of that Act.
Division 5 - Miscellaneous
363 Saving provision - qualified privilege
Subsections 225A(3) and (4) of the old Act, as in force immediately before the External Reporting Australia start day, continue to apply on and after that day in relation to a disclosure made in response to a notice given under subsection 225A(1) of the old Act before that day.
364 Saving provision - liability for damages
Despite the amendments made by Part 1 of Schedule 1 to the Treasury Laws Amendment (Financial Reporting System Reform) Act 2026, section 246 of the old Act continues to apply on and after the External Reporting Australia start day in relation to an act done or omitted before that day.
365 Transitional rules
(1) The Minister may, by legislative instrument, make rules prescribing matters:
(a) required or permitted by this Part to be prescribed by the rules; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Part.
(2) Without limiting subsection (1), the rules may prescribe matters of a transitional nature (including prescribing any saving or application provisions) relating to the amendments or repeals made by Part 1 of Schedule 1 to the Treasury Laws Amendment (Financial Reporting System Reform) Act 2026.
(3) To avoid doubt, the rules may not do the following:
(a) create an offence or civil penalty;
(b) provide powers of:
(i) arrest or detention; or
(ii) entry, search or seizure;
(c) impose a tax;
(d) set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;
(e) directly amend the text of this Act.
(4) This Part (other than subsection (3)) does not limit the rules that may be made for the purposes of subsection (1).