Australia’s government has proposed major changes to corporate reporting rules as part of its 2026 Budget, including increasing the thresholds for companies required to publish audited financial and sustainability reports. Under the proposal, companies with revenues below A$100 million and assets below A$50 million would be exempt from these reporting obligations.
The government also plans to consult on reforms to ease compliance burdens related to climate reporting, such as defining clearer limits on supplier information requests to reduce costs and complexity, especially for small businesses. These measures are part of a broader regulatory reform agenda expected to cut compliance costs by A$10.2 billion annually once fully implemented.
Australia introduced mandatory climate-related reporting requirements in 2024 for large and medium-sized companies, covering disclosures on climate risks, opportunities, and greenhouse gas emissions across the value chain. The reporting rollout began in 2025 for the largest companies and is scheduled to extend to smaller companies in 2027.
Currently, companies with at least 100 employees, A$50 million in revenue, or A$25 million in assets are set to come under the reporting scope in 2027 if they meet two of these thresholds. The new proposal would raise the financial thresholds to A$100 million in revenue and A$50 million in assets, while keeping the 100-employee threshold unchanged, significantly reducing the number of smaller companies required to report.
The government will also explore ways to improve the efficiency of climate-related disclosures, including clarification of terms such as “undue cost or effort,” adjustments to assurance requirements, and limits on supplier data requests, with a focus on lowering compliance costs for smaller businesses.
