On 1 June 2026, the Australian Securities and Investments Commission (ASIC) proposed consolidating 17 financial reporting and auditing relief instruments into two new legislative instruments as part of its regulatory simplification programme. The proposal aims to streamline financial reporting and auditing requirements, improve accessibility of regulatory relief, and reduce the number of legislative instruments applicable to reporting entities and auditors. ASIC stated that the initiative responds to stakeholder feedback received through its regulatory simplification consultations and is intended to make available relief easier for users to identify and apply. Stakeholders have been invited to provide submissions on the proposed instruments by 10 July 2026.
ASIC Advances Regulatory Simplification Initiative
ASIC has released two draft legislative instruments for consultation:
- ASIC Corporations (Annual and Half-year Reporting) Instrument 2026/XXX (Draft Financial Reporting Instrument); and
- ASIC Corporations (Auditing) Instrument 2026/XXX (Draft Auditing Instrument).
According to ASIC, the proposed consolidation is designed to simplify the legislative framework governing financial reporting and auditing relief by reducing the number of separate instruments currently in force.
The regulator stated that the proposal forms part of its ongoing commitment to regulatory simplification and follows stakeholder feedback received during its consolidation pilot initiative. Copies of the draft instrument.
Background to the Consolidation Proposal
ASIC noted that the proposal responds to feedback received through its regulatory simplification programme, including feedback discussed in Report 813: Regulatory Simplification and further progress outlined in Report 830: Regulatory Simplification Progress Report.
The regulator indicated that consolidating related relief provisions into broader instruments would assist users in understanding available relief and navigating reporting and auditing requirements more efficiently.
Financial Reporting Relief Instruments Proposed for Consolidation
The Draft Financial Reporting Instrument would consolidate fourteen existing legislative instruments relating to financial reporting requirements, including relief concerning:
- Reporting by stapled entities;
- Parent entity financial statements;
- Financial reporting by natural person licensees;
- Foreign-controlled company reports;
- Rounding in financial and directors’ reports;
- Reporting obligations of disclosing entities;
- Synchronisation of financial years;
- Directors’ report relief;
- Electronic lodgment of financial and sustainability reports;
- Technical reporting relief;
- Post balance date reporting;
- Non-reporting entities;
- Related scheme reports; and
- Stapled group reports.
ASIC stated that consolidating these instruments would create a single legislative instrument addressing a broad range of annual and half-year reporting relief provisions.
Auditing Relief Instruments to be Combined
The Draft Auditing Instrument would consolidate three existing auditing-related instruments:
- ASIC Corporations (CCIV Auditors) Instrument 2024/668;
- ASIC Corporations (Auditor Independence) Instrument 2021/75; and
- ASIC Corporations (Audit Relief) Instrument 2016/784.
ASIC also proposes removing requirements contained in sections 6(i), 6(s), and 6(v) of ASIC Corporations (Audit Relief) Instrument 2016/784 as part of the consolidation exercise.
Consultation Process
ASIC has invited stakeholders to provide feedback on the draft instruments. Submissions may be lodged with ASIC until 5:00 pm AEST on 10 July 2026. Copies of the draft instruments have been released through Consultation Paper CS 54, titled Proposed Consolidation of Financial Reporting and Auditing Instruments.
Following the consultation period, ASIC will consider stakeholder submissions before determining whether to finalise the proposed consolidated instruments. The initiative forms part of ASIC’s broader efforts to simplify Australia’s corporate reporting and auditing regulatory framework while maintaining access to existing relief arrangements.
