Sustainability reporting
Proposed changes to reporting thresholds
The Australian Government is consulting on proposed changes to the large proprietary company thresholds in s45A of the Corporations Act 2001 (Corporations Act), as announced in the 2026-27 Budget. The proposed changes will result in an increase to the thresholds for consolidated revenue to $100 million (from $50 million) and consolidated assets to $50 million (from $25 million).
If the proposed changes are made, they will affect which entities are required to prepare a financial report and sustainability report under Chapter 2M of the Corporations Act. Some entities that were expecting to report as a Group 3 entity may no longer be required to prepare a financial report or sustainability report.
The proposed changes are not yet in effect, so you should continue to check for updates. Until any changes are made, the existing financial reporting and sustainability reporting thresholds continue to apply.
This section contains information about the sustainability reporting requirements under the Corporations Act 2001 (Corporations Act).
Under Chapter 2M of the Corporations Act (Ch 2M), entities that are required to prepare an annual financial report under Ch 2M for a financial year, and meet one of the sustainability reporting thresholds in s292A, are required to prepare a sustainability report.
The sustainability report must contain climate-related financial information required under the Corporations Act and AASB S2 Climate-related disclosures. This report is required as part of these entities’ annual reporting obligations, alongside the annual financial report, directors’ report, auditor’s report on the annual financial report and auditor’s report on the sustainability report.
The Australian Parliament has prioritised the introduction of climate-related financial disclosures. It comprises the first, and at this stage only, component of the sustainability report. Over time, the Australian Parliament may introduce additional mandatory sustainability reporting requirements for subjects beyond climate.
ASIC is responsible for administering the sustainability reporting requirements under the Corporations Act and will monitor compliance with them.
Sustainability reports prepared in accordance with the law help maintain and promote confidence and integrity in Australia’s capital markets. They also help users of the information to make informed decisions.
This ASIC webpage summarises the requirements on sustainability reporting, but it does not cover all aspects of sustainability reporting. For more information, refer to the relevant legislation and sustainability standards.
This information does not represent legal or other professional advice. We encourage you to seek your own professional advice to find out how the Corporations Act and other relevant laws may apply to you and your circumstances.