On 27 January 2023, the AICD made a submission to Treasury to help inform the Commonwealth Government's upcoming 2023-2024 Budget.
The AICD outlines three key areas where the Government should prioritise corporate governance related reforms, while providing broader commentary on the macro-economic outlook drawing on our biannual survey of the director community (the AICD Director Sentiment Index).
The AICD made the following key points in its submission:
- Existing cyber security and data management settings are complex and fragmentary, with a partnership approach critical to building the nation’s cyber resilience. A high priority should be placed on coordinated regulation that supports effective governance and risk management.
- The introduction of a mandatory climate reporting regime poses significant opportunities for Australia to align with global practice, especially those of key trading partners. Legal liability settings will need to be carefully reviewed to ensure that they promote comprehensive, good faith adoption that meets the market and broader stakeholder expectations. Left unresolved, liability concerns could drive bare bones disclosure that fails to provide the necessary level of transparency to support Australia’s carbon emission targets.
- Ongoing policy uncertainty and unnecessary regulation continues to hold back the NFP sector. We encourage urgent action to harmonise fundraising laws across the country, and careful consideration of the costs and benefits associated with re-imposing individual director’s duties under the Corporations Act 2001 (Corporations Act).
- AICD Director Sentiment Index (DSI) results indicate that labour and skills shortages are the most important economic challenges facing Australian organisations, followed by inflation and interest rates; supply chain problems; global economic uncertainty and the cost of living.
- AICD members, through the DSI, have highlighted addressing skills shortages, climate change and energy policy as the top three areas for short term policy intervention.
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