Accounting Reform Rules Remain Unfinalised

The federal government says its proposed accounting and audit regulation reforms are still being refined after a Treasury consultation.

Updated on Nov. 6, 2026 in Legislative Policy

Accounting Reform Rules Remain Unfinalised

The federal government told Senate estimates that its accounting and audit regulation reforms are still being refined. Treasury released a consultation paper on 1 July 2026 that outlined options including registering accounting firms as auditors in their own right, forced structural separation of accounting practices, higher penalties for misconduct and greater regulatory surveillance.

Why it matters

The proposals target oversight of accounting and audit firms across Australia, so the final design will shape how those firms are regulated. Until legislation is introduced, the rules affecting firms and the market remain unsettled.

Treasury released its consultation paper on 1 July 2026 and the consultation closed on 12 August 2026. The government has not stated when legislation will be introduced.

The players

Barbara Pocock

Australian Greens senator who questioned the government at Senate estimates about when accounting reform legislation might be introduced.

The details

Treasury's consultation paper set out reform options for accounting and audit regulation, including registering accounting firms as auditors, forced structural separation of accounting practices, increased penalties for misconduct and boosting regulatory surveillance and inspections. Australian Greens Senator Barbara Pocock pressed the government on when legislation might be forthcoming.

1 July 2026: Treasury releases accounting and audit regulation consultation paper.
12 August 2026: Treasury consultation on accounting reforms closes.

Legislative Policy Pipeline

The reforms are at the post-consultation stage, with the government still refining proposals from the Treasury paper released on 1 July 2026 before any bill is drafted.

Firms that audit or provide accounting services could face new registration requirements, structural separation rules and higher penalties if the proposals proceed. Those changes would affect how these firms operate and are overseen once legislation is introduced.

The takeaway

Reform options on accounting and audit oversight remain in development, so firms and observers should watch for the government's next legislative step. Clear timing from Treasury will show how quickly the proposals may change current rules.