Australia is lagging behind major global markets in financial reporting and must transition to digital reporting, according to Chartered Accountants Australia and New Zealand (CA ANZ).
In a pre-budget submission, CA ANZ urged the government to amend the Corporations Act to require disclosing entities to submit annual and half-year financial reports in xBRL format. The accounting body also called for investment in digital reporting infrastructure to support implementation and streamline inefficient, duplicative reporting processes.
Australia Falling Behind Global Standards
CA ANZ highlighted that many major economies have already adopted digital reporting, making financial reports more accessible to investors and regulators.
“Our nation has fallen behind other major markets around the world, which have required digital reporting for several years,” CA ANZ stated. “Retail investors are demanding digital reporting to make financial reports more accessible and customised to their needs.”
The organization emphasized that Australia’s reliance on paper-based and PDF reports limits regulatory oversight, transparency, and investor engagement.
Government Signals Interest in Digital Reporting
Treasurer Jim Chalmers previously acknowledged the importance of digital reporting, noting its potential role in corporate climate disclosures. In July 2023, Deloitte Access Economics released a report outlining how digital reporting could enhance financial transparency, regulatory efficiency, and Australia’s global market integration.
Chalmers stressed that for corporate climate risk disclosures to be effective, the data must be easily accessed and analyzed, rather than being “buried away in PDFs.”
“Digital reporting clearly has a role to play here,” Chalmers said. “As we go about bedding down climate disclosure, we’ll ensure our frameworks are flexible enough to incorporate digital climate reporting in the future.”
The Case for xBRL Digital Reporting
xBRL (eXtensible Business Reporting Language) allows financial reports to be machine-readable, making automated analysis possible across large data sets. The format enables more efficient auditing, regulatory review, and financial reporting verification.
CA ANZ argues that adopting xBRL will enhance investor confidence, improve compliance oversight, and position Australia as a leader in financial transparency.
With growing global demand for standardized, digital financial disclosures, industry leaders and policymakers are now considering how best to accelerate Australia’s transition.
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