CA ANZ, CPA Australia and Institute of Public accountants (IPA) have lodged a joint submission to the Department of Prime Minister and Cabinet’s Deregulation Task force seeking a new coordinated plan to reform and standardise reporting and audit requirements in the private sector nationwide. 

Drawing on evidence contained in the recently issued AASB Research Report 10 , investigating legislative reporting requirements, and a similar study by the University of Adelaide on audit requirements, the submission argues that while some progress has been made, far too many business types in all sectors in all states and territories continue to operate under complex, inconsistent and unnecessary regulation. These requirements are expensive and difficult to comply with, inefficiently using the scarce resources of both business and the accounting profession. They also undermine both the value of the information they require to be produced and the ability of regulators to enforce the requirements.

The three accounting bodies have a long held view that a fit for purpose national reporting framework is a critical element in promoting the effective operation of Australian businesses, and in balancing the costs of preparation and audit of financial information with the necessary accountability to regulators, investors and the general public. It is therefore time for a new response. 

The submission acknowledges that reducing the financial reporting red tape requires a concerted coordinated effort by state and federal regulators but cites the Australian Charities and Not for profits Commission’s( ACNC)’s red tape reduction initiatives as an example of what is possible if this occurs.

They have therefore called on the Deregulation Task Force to develop a roadmap that has as its objective a simpler national legislative financial reporting and auditing framework for both the for profit and not-for-profit sector. This framework needs to clear up inconsistent reporting obligations and be easy to understand while still ensuring appropriate levels of accountability are applied. Such a roadmap would require all levels of government, legislators, regulators and standard setters, to collaborate and agree to move together.