SYDNEY, 6 March – The Business Council for Sustainable Development Australia (BCSDA) has formally submitted its response to the Treasury’s consultation on Positioning Australia’s Financial Reporting System for the Future, calling for a streamlined oversight structure, stronger safeguards, and alignment with global best practices.
BCSDA’s submission draws on lessons from comparable jurisdictions—such as the United Kingdom, United States, and European Union—to highlight how consolidating financial oversight bodies can reduce complexity while preserving the expert-driven, high-quality standards needed for effective governance.
In its submission, BCSDA supports the consolidation of the Financial Reporting Council (FRC), Australian Accounting Standards Board (AASB), and Auditing and Assurance Standards Board (AUASB) under a unified governance model. However, the Council stresses that any restructuring must include independent technical committees, transparent consultation processes, and rigorous conflict-of-interest policies to maintain stakeholder trust. BCSDA also emphasizes the importance of digital transformation and data analytics for more efficient oversight, urging policymakers to future-proof the new entity through advanced technologies and ongoing training.
“Consolidation is a necessary step toward a more streamlined and transparent regulatory system, but its success hinges on structural safeguards, independence, and a forward-thinking governance model,” said Andrew Petersen, CEO of BCSDA. “Australia must adopt a balanced approach that promotes efficiency, global alignment, and specialist expertise if we aim to be a leader in sustainable financial reporting.”
Among the key recommendations in the submission, BCSDA highlights:
· Adopting Global Standards: Align with IFRS and ISSB frameworks to strengthen Australia’s credibility, ensuring clear and consistent reporting on both financial and sustainability metrics.
· Preserving Expertise: Establish dedicated technical committees for financial accounting, auditing, and sustainability, equipped with the resources and authority to set robust standards.
· Strengthening Governance: Implement transparent oversight mechanisms, including clearly defined “firewall” policies to protect committee independence and mandatory public consultation periods to preserve stakeholder confidence.
· Digital Innovation: Integrate advanced data platforms and AI-driven solutions to reduce administrative burdens and provide timely, accurate disclosure.
· Periodic External Reviews: Conduct regular governance audits against international benchmarks to maintain high-quality standards and respond to evolving market demands.
BCSDA’s submission underscores that efficient consolidation, properly balanced with accountability, can give Australia a distinct edge in sustainable finance. By keeping pace with international developments—especially around emerging sustainability standards—BCSDA believes Australia can enhance investor confidence, protect the public interest, and support businesses of all sizes in meeting the challenges of an increasingly complex market.
BCSDA looks forward to continuing dialogue with policymakers, industry leaders, and stakeholders to ensure these reforms not only streamline operations but also foster a more resilient, transparent, and future-ready financial reporting system. The Council anticipates further consultation and stands ready to support the implementation of these recommendations.
About BCSD Australia
The Business Council for Sustainable Development Australia is a non-profit organisation dedicated to operationalising sustainable development practices among Australian businesses. BCSD Australia 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).
BCSD Australia’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.
BCSD Australia’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, BINGOs and community organisations, which in turn represent 120,000 + Australian employees. www.bcsda.org.au.
t: +61 (0)2 8005 0780
m: +61 (0)412 545 994
For further information contact: Andrew Petersen, CEO, Business Council for Sustainable Development Australia, +61 412 545 994