Glossary term
Cluster B · B3
Tier 1 · differentiator
Group 2 entity
Definition
A Group 2 entity is in the second cohort captured by Australia’s mandatory climate reporting regime and reports for annual reporting periods commencing on or after 1 July 2026. It meets two of three thresholds: consolidated revenue of $200 million or more, consolidated gross assets of $500 million or more, or 250 or more employees.
Corporations Act 2001
· section 292A ·
In force
On this page
In practice
Two other routes lead into Group 2. Any registered NGER reporter that is not above the section 13(1)(a) publication threshold is Group 2. And asset owners, meaning registrable superannuation entities, registered schemes and retail CCIVs with $5 billion or more in assets, are Group 2 from periods commencing on or after 1 July 2026.
Group 2 is the largest practical cohort of first-time reporters, and it is where the regime meets organisations with no sustainability function at all. A $250 million revenue manufacturer with 300 staff has the same disclosure obligation as an ASX 100 company, with none of the infrastructure.
What the assurer does with it
The assurer fixes the first reporting period before scoping, because ASSA 5010 sets year one at limited assurance over a defined subset: the governance disclosures, the strategy disclosures covering climate-related risks and opportunities, and Scope 1 and Scope 2 emissions. They ask for the threshold calculation agreed to the audited consolidated financial statements and for the NGER registration status of every entity in the group. What they raise most often with a Group 2 first-timer is the interim data problem: activity data for the first nine months of the period arriving unreconciled after year end, which is why an in-year dry run is usually proposed.
Timing and relief
For a 30 June year end, a Group 2 entity’s first reporting period is the year commencing 1 July 2026 and ending 30 June 2027. For a 31 December year end, the first captured period commences 1 January 2027 and ends 31 December 2027, because a year commencing 1 January 2026 starts before 1 July 2026.
Sources
1
2
3
ASSA 5010 Timeline for Audits and Reviews of Information in Sustainability Reports under the Corporations Act 2001
AUASB
Review status
Review required
Last reviewed
15 September 2026
Editorial pass, unsigned
Reviewer required
Corporate lawyer or registered company auditor
Next scheduled review
1 July 2027
Part of
Cluster B, Regulation, capture and thresholds / Regulation, capture and timing
26 terms on who has to report, when their first report is due, and what the regime is built on.
Related terms
The cohort ahead of you, already reporting
The cohort behind, with a carve-out Group 2 does not have
The two-of-three tests behind the group determination
Related questions
We are Group 2. When is our first report actually due?
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Group 2 obligations start with your first financial year commencing on or after 1 July 2026, not on 1 July 2026 itself. With a 30 June balance date that is the year ending 30 June 2027. It is lodged by 30 September 2027 if you are a disclosing entity, registered scheme or RSE, otherwise 31 October 2027.
What are the thresholds for Group 1, Group 2 and Group 3?
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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?
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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.
Where this sits commercially
Carbonhalo builds the Group 2 first-year file from the start of the reporting period, not after it.
Other terms in this cluster
Group 2 entity