Sustainability reporting changes

The Australian Government is consulting on changes to improve the efficiency of climate-related financial disclosures (“sustainability reporting”).

Reforms announced in the Budget 2026-27 include raising the monetary thresholds prescribed for determining whether a proprietary company is ‘large’:
to $100 million revenue (from $50 million); and
to $50 million in assets (from $25 million).

This will have the effect of relieving smaller Group 3 entities (between the current thresholds and the proposed increase) from mandatory sustainability reporting.

The main proposals include:
* changing assurance rules to reduce compliance costs;
* providing clearer guidance on key terms and concepts; and
* reducing the burden of information requests across supply chains.

The changes being considered will not impact those reporting for the 2026-27 financial year.

ASIC has released a series of sustainability reporting videos, completing the package of educational materials to help companies understand foundational concepts behind the sustainability reporting requirements.

Mandatory climate-related financial disclosures commenced on 1 January 2025, requiring Australia’s largest entities to report on their climate-related risks and opportunities.

The legislation requires Australia’s largest listed and unlisted reporting entities to prepare an annual sustainability report in accordance with Chapter 2M of the Corporations Act 2001.

Reporting entities are being phased into reporting requirements in three groups.

Table 2 in ASIC RG 280 sets out the phasing in of reporting requirements.

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Author: David Jacobson
Principal, Bright Corporate Law
Email: djacobson@brightlaw.com.au
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.