This blog is for preparers of financial statements for whole-of-government reporting entities, those charged with governance at those entities, and users of their financial statements. 

In this blog, we summarise Queensland Treasury’s changes in its 2025–26 Financial Reporting Requirements for Queensland Government Agencies (FRRs) released on 2 July 2026. 

There were no changes to the Non-Current Asset Policies for the Queensland Public Sector (NCAPs) for this year. 

Departments and statutory bodies must comply with the FRRs and NCAPs. They are available on Queensland Treasury’s website, including a summary of noteworthy changes.

The FRRs, illustrative financial statements, and NCAPs are good resources even if your entity does not need to follow them (for example, local governments, government owned corporations, or universities). This is because they demonstrate how to apply the accounting standards in a public sector environment.

No major changes

There are no new material accounting standard or material policy changes that Queensland Treasury requires entities to implement this financial year.

Disclosures options: GST disclosures

Entities now have discretion regarding line-item presentation of GST in the statement of cash flows, provided that GST cashflows are included on a gross basis. There are now 4 permitted options.

The previously preferred ‘4 line’ method, while no longer mandated in the FRR policy, is still permitted. We encourage entities to consider which option is the most appropriate for them. It is also important to ensure that entities can support the disclosures in their financial statements, whichever option they choose. 

Climate reporting and climate-related risks

FRR chapter 1A, section 5, Climate-Related Risks and Financial Reporting has had minor updates, including updated web links to current publications, and updated disclosure text for the illustrative financial statements, reflecting current government policy.

Queensland Treasury emphasises that entities should refer to directions from the Under Treasurer in July 2025 and the Queensland Treasury Financial Management Centre website regarding reporting of selected Greenhouse Gas (GHG) Emissions. These are to be reported to Queensland Treasury solely for the purposes of whole-of-government reporting and entities are not to disclose their GHG emissions in their 2025–26 financial statements.

New accounting standards affecting future financial years

FRR chapter 1A, section 4, includes new or updated sections for future financial years:

• AASB 17 Insurance Contracts and AASB 2022-9 Amendments to Australian Accounting Standards – Insurance Contracts in the Public Sector, which commences financial years beginning on or after 1 July 2026.
• AASB 18 Presentation and Disclosure in Financial Statements will be effective for not-for-profit public sector entities from 1 January 2028 for, and 1 January 2027 for for-profit entities. The Australian Accounting Standards Board is currently developing proposals for application to the public sector that is likely to reduce the effect on not-for-profit public sector entities. Queensland Treasury will perform further analysis and make any policy decisions needed once the amending standard is issued.

You should consider whether these changes are likely to affect your agency.

We hope this blog provides a useful overview on the latest FRRs and NCAP changes.

Resources

• Queensland Treasury: Financial Reporting Requirements for Queensland Government Agencies and Summary of noteworthy changes
• Queensland Treasury: Non-Current Asset Policies for the Queensland Public Sector.