Here’s an update on CA ANZ’s ongoing efforts to strengthen regulation, better target super concessions, manage climate reporting impacts on small practices, and address accountant and auditor shortages.

 

CA ANZ has been engaging with members and stakeholders to develop input for Treasury’s consultation paper Response to PwC – Regulation of Accounting, Auditing and Consulting Firms in Australia, in addition to continuing to engage with the other parliamentary inquiries into relevant matters. Reports from both the NSW Government and senate inquiries have now been released and are being considered by CA ANZ.

We gave evidence to the Senate Economics Legislation Committee about the government’s Better Targeted Superannuation Concessions policy, outlining our long list of objections to the policy, and providing a range of potential adjustments and alternatives. The overall view in our joint submission to Treasury is that the draft regulations are poorly designed and need to be restructured.

 

CA ANZ contributed to the attorney-general department’s second consultation, to bring accountants into a modernised and broadened anti-money laundering and counter-terrorism financing regime. We participated in the sector roundtable and have actively encouraged members to provide feedback on the proposals.

 

CA ANZ has raised concerns about the significant impact the Climate Reporting Bill’s audit requirements will have on SMEs and small and medium-sized practices, despite government anticipating 95% will have no material climate risks or opportunities.


A recent climate-related survey of CA ANZ members found that 88% do not support the introduction of these requirements for Group 3 entities, 84% don’t believe these entities will be ready in time and 90% don’t believe the entities will be willing to support or even pay for these audits. Our survey results were widely reported in the media and raised at a parliamentary inquiry focused on the Bill.

Advocacy spanning multiple years has culminated in a clearer and simpler pathway for qualified auditors in the UK and Australia to apply for recognition of their qualification and audit rights in the other nation. The Australian Securities & Investments Commission and the UK Financial Reporting Council have signed a memorandum of understanding on reciprocal arrangements for the mutual recognition of auditors.

The agreement is expected to increase the supply of experienced auditors in
both countries and help drive audit quality, providing one solution to the ongoing domestic and global shortage of statutory auditors.

To address the ongoing accountant and auditor shortage, CA ANZ also made submissions to Jobs and Skills Australia, advocating for inclusion of these occupations on the 2024 Skills Priority List and the Core Skills Occupations List, to continue enabling sponsorship of skilled visas where the roles cannot be filled with domestic talent.

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Take away

Keep up to date with CA ANZ’s advocacy work in the next issue of Acuity, or access our policy submissions here