What are the thresholds for Group 1, Group 2 and Group 3?

Group 1 is two of $500 million revenue, $1 billion gross assets and 500 employees. Group 2 is two of $200 million, $500 million and 250 employees, and Group 3 is two of $50 million, $25 million and 100 employees. All figures are consolidated and you test them every year.

Our financial year ends 30 June. What is our first reporting period?

Your first reporting period is the first financial year that begins on or after your group's start date, so the test applies to the start of the year and not its end. With a 30 June balance date that is the year ending 30 June 2026 for Group 1, 30 June 2027 for Group 2 and 30 June 2028 for Group 3.

We report under NGER. Does that automatically capture us?

It can. If you are a corporation registered under the NGER Act and your Scope 1 and Scope 2 emissions are at or above the 50,000 tonne CO2-e publication threshold, you are in Group 1. Every other registered NGER corporation sits in Group 2, regardless of size.

Glossary›Regulation, capture and thresholds / Regulation, capture and timing›Group 1 entity

Glossary term

Cluster B · B2

Tier 1

Group 1 entity

Definition

A Group 1 entity is in the first cohort captured by Australia’s mandatory climate reporting regime and reports for annual reporting periods commencing on or after 1 January 2025. An entity is Group 1 if it meets two of three thresholds: consolidated revenue of $500 million or more, consolidated gross assets of $1 billion or more, or 500 or more employees.

Corporations Act 2001

· section 292A ·

In force

On this page

In practice
What the assurer does with it
Timing and relief
Sources
Related terms
Related questions

Cluster

B · Regulation, capture and thresholds / Regulation, capture and timing, 26 terms

In practice

The size test is not the only route into Group 1. An entity registered under the National Greenhouse and Energy Reporting Act that is above the publication threshold in section 13(1)(a) of that Act is Group 1 regardless of its revenue, assets or headcount. That catches emissions-intensive operations that are not large in financial terms.

The gateway condition is often missed. Section 292A only applies to an entity that is already required to prepare a financial report under Chapter 2M. If you do not lodge a financial report, you do not lodge a sustainability report, however large you are.

What the assurer does with it

Group determination sits in engagement acceptance, because under ASSA 5010 the reporting year counted from the entity’s own first reporting period sets what is assured and at what level. The assurer asks for the threshold calculation agreed to the audited consolidated financial statements, and separately asks whether the entity or any controlled entity is a registered NGER corporation. They reject a Group 1 determination reached on the size test alone where a NGER registration exists and has not been assessed against the section 13(1)(a) publication threshold.

Timing and relief

For a 30 June year end, a Group 1 entity’s first reporting period is the year commencing 1 July 2025 and ending 30 June 2026. For a 31 December year end, it is the year ended 31 December 2025.