The Hon. Jim Chalmers, Treasurer, Media Release, 27 March 2024
The Albanese Government will today introduce legislation to maximise the economic opportunities of cleaner, cheaper and more reliable energy and strengthen Australia’s financial system.
These new laws will modernise our financial system, provide greater information and clarity to investors, and incentivise investment in the net zero transformation.
The Treasury Laws Amendment (Financial Market Infrastructure and other measures) Bill which will be introduced today, will implement two important reforms – new mandatory climate reporting requirements for big companies and a new regime to protect our financial market infrastructure in the event of a crisis.
Climate reporting
After a decade of delay and denial under the Coalition, we’re taking action on climate reporting to support more investment in cheaper and cleaner energy and help companies and investors manage climate risks.
This legislation will introduce standardised, internationally-aligned reporting requirements for businesses, to ensure they are making high quality climate-related financial disclosures.
Our changes will establish Australia’s climate risk disclosure framework, giving investors and companies the transparency, clarity and certainty they need to invest in new opportunities as part of the net zero transformation.
A rigorous, internationally-aligned and credible climate disclosure regime will support Australia’s reputation as an attractive destination for international capital and incentivise investment in the energy transformation.
Reporting requirements will commence from 1 January 2025 for Australia’s largest listed and unlisted companies and financial institutions and other large businesses will be phased in over time.
Financial market infrastructure
The legislation also includes reforms to strengthen regulatory arrangements for Australia’s financial market infrastructure.
These reforms address a gap in our financial system regulatory arrangements and implement an important and longstanding recommendation of the Council of Financial Regulators.
The legislation will allow the RBA to step in and quickly resolve crises impacting critical financial market infrastructure and strengthens the RBA and ASIC’s regulatory powers.
It will also ensure continuity of clearing and settlement services in the face of a crisis.
Whether it’s climate disclosures, financial markets, or many of our other important changes, the Albanese Government has a broad and ambitious economic reform agenda.
Our economic reform agenda is all about modernising our economy and providing more certainty for more investment in Australia, and that’s what this legislation will deliver.
