Mandatory climate reporting bill passed
The Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 was passed by Parliament on 9 September 2024. The Bill introduces the framework for Australia’s first climate-related financial disclosure regime with reporting to commence from 1 January 2025.
As reported in the January regulatory update, entities which lodge financial reports under Chapter 2M of the Corporations Act will be required to lodge climate-related financial reports. A phased-in approach will be used and subject to size thresholds as below:
Entity | Thresholds at the end of the applicable financial year | Reporting on or after |
Very large | any two of: · Consolidated revenue of $500m · consolidated assets of $1b · 500 employees | 1 January 2025 |
Large | any two of: · Consolidated revenue of $200m · consolidated assets of $500m · 250 employees | 1 July 2026 |
Medium | any two of: · Consolidated revenue of $50m · consolidated assets of $25m · 100 employees | 1 July 2027 |
Asset owners: registered schemes and registrable superannuation entities | · $5b of assets | 1 July 2026 |
Entities that are exempt entirely from lodging financial reports under Chapter 2M of the Corporations Act 2001 (Cth) are not required to prepare sustainability reports. This includes small and medium-sized businesses and asset owners that fall below all of the size thresholds.
The climate-related financial disclosures will be reported in a new 'sustainability report'. It is likely to be included in an entity's annual report to be lodged with ASIC. It is important to note that the timing of lodgement of the sustainability report is to be consistent with the timing of lodgement of the remainder of the annual report.
Disclaimer: This does not purport to be comprehensive or to render legal advice. You should not act based on any information contained in this publication without first obtaining specific professional advice. Consult your legal advisor to determine if this applies to you.