MEDIA RELEASE (AU)

The peak accounting body for accountants in Australia, CA ANZ, notes the passing of legislation establishing External Reporting Australia (ERA).

ERA brings together the Australian Accounting Standards Board, the Auditing and Assurance Standards Board and the Financial Reporting Council into a single body responsible for setting accounting, audit and sustainability standards from late 2026.

A long-advocated sustainability standards board

CA ANZ’s Sustainability Leader, Karen McWilliams said the reform is an important step toward simplifying Australia's financial reporting framework.

“The new combined body includes a separate sustainability standard-setting board, alongside accounting and auditing and assurance.

“A dedicated standard-setting board focused on sustainability is something we have advocated for since 2023.

“Sustainability standards must carry the same weight as accounting and audit standards, both here and internationally, particularly now that mandatory climate-related disclosures are underway," Ms McWilliams said.

Retaining practising expertise on the new body

Reporting and Assurance Leader Amir Ghandar said that during the consultation process, CA ANZ consistently advocated for the inclusion of practising professionals within the new standards setting body.

“Public confidence in Australia’s reporting framework depends on both independence and technical excellence.

“While we support safeguards aimed at protecting the independence of the ERA, we are disappointed that experienced Registered Company Auditors (RCAs) from firms with more than 50 RCA partners are not eligible to participate in the body.

“Our view remains that eligibility settings should enable access to the broadest possible pool of highly qualified experts, regardless of where they work, supported by strong disclosure and conflict management safeguards.

“There is no other profession where a person’s technical expertise is excluded because of where they work.

“We are pleased to see the legislation prescribes that board appointees must have technical expertise and practical, real-world experience, as well as processes and guardrails to enable the governing body and the technical boards to have distinct roles.

“CA ANZ will continue to work closely with Treasury, ERA and stakeholders to support a smooth transition and ensure the new model delivers robust, globally aligned standards that sustain trust, investment and market integrity,” Mr Ghandar said.

Funding and resourcing the transition

The 2026 Federal Budget allocated $4.8 million to support the transition to ERA, including short-term support for the AASB and AUASB during the handover and additional resourcing for climate and sustainability reporting as external reporting requirements expand.

“It will be important that the new body is sustainably resourced to reflect its expanded responsibilities and maintain confidence in Australia’s standard‑setting framework.

“These reforms come at a time of growing demand for accounting, audit and sustainability expertise, reinforcing the need to support a strong and capable pipeline of professionals,” Mr Ghandar said.