On 9 September 2024, the government’s climate-related financial disclosure reforms were passed by the House of Representatives. These reforms will become law once Royal Assent has been given.

The Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 amends the Corporations Act 2001 (Cth) and 8 other Acts to implement recommendations by the Council of Financial Regulators.

The legislation introduces standardised reporting requirements for businesses to ensure they are making high-quality climate-related financial disclosures and gives the Australian Accounting Standards Board (AASB) the authority to set legally binding climate reporting standards for large businesses and financial institutions.

The legislation also includes reforms to strengthen regulatory arrangements for Australia’s financial market infrastructure.

The passing of this Bill aligns Australia with other jurisdictions by implementing disclosure standards that reflect the International Sustainability Standards Board (ISSB) requirements.