Glossary›Regulation, capture and thresholds / Regulation, capture and timing
Glossary cluster
Cluster B
26 terms
Regulation, capture and thresholds / Regulation, capture and timing
About this cluster
Who has to report, when their first report is due, and what the regime is built on. These terms cover the Corporations Act capture tests, the reporting groups and the thresholds and dates that set an entity’s first reporting period.
Terms in this cluster (26)
B1 · Tier 1 · differentiator
Mandatory climate reporting is the Australian requirement for large entities to prepare an annual sustainability report containing climate disclosures made under AASB S2, lodge it with ASIC alongside the financial report, and have it…
B2 · Tier 1
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.
B3 · Tier 1 · differentiator
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.
B4 · Tier 1
A Group 3 entity is in the third cohort captured by Australia’s mandatory climate reporting regime and reports for annual reporting periods commencing on or after 1 July 2027.
B5 · Tier 1 · differentiator
The reporting thresholds decide whether an entity is captured and in which group.
B6 · Tier 1 · differentiator
The first reporting period is the financial year your climate disclosures cover.
B7 · Tier 1 · differentiator
A sustainability report is the statutory report required by section 292A of the Corporations Act.
B8 · Tier 2
The Australian Sustainability Reporting Standards are the standards issued by the AASB that a Corporations Act sustainability report must comply with.
B9 · Tier 2
The Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024 is the Commonwealth legislation that created Australia’s mandatory climate reporting regime.
B10 · Tier 1 · differentiator
Regulatory Guide 280 Sustainability reporting is ASIC’s guidance on the mandatory climate reporting regime.
B11 · Tier 1 · differentiator
Section 1707D of the Corporations Act temporarily restricts who may bring proceedings over certain statements in a sustainability report or the auditor’s report on it.
B12 · Tier 1 · differentiator
The directors’ declaration is the board’s formal statement about the sustainability report, forming part of the report lodged with ASIC.
B13 · Tier 1 · differentiator
The consolidated entity is the boundary used to test whether an entity is captured.
B14 · Tier 1 · differentiator
A controlled entity is generally covered by its parent’s consolidated sustainability report rather than preparing its own, where the parent elects to report for the consolidated entity and is required by the accounting standards to…
B15 · Tier 1
An asset owner is a registered scheme, registrable superannuation entity or retail corporate collective investment vehicle captured by the value of the assets it holds rather than by the two-of-three size test.
B16 · Tier 1
The National Greenhouse and Energy Reporting Scheme is Australia’s pre-existing mandatory emissions and energy reporting framework, administered by the Clean Energy Regulator.
B17 · Tier 1 · differentiator
Registration under the NGER Act is an independent trigger for mandatory climate reporting.
B18 · Tier 2
The Safeguard Mechanism sets declining emissions baselines on Australia’s highest-emitting industrial facilities, being those with covered Scope 1 emissions above 100,000 tonnes CO₂-e a year.
B19 · Tier 1 · differentiator
ASIC administers the sustainability reporting requirements and can act on failure to lodge, on deficient disclosure and on misleading statements, using the same powers that apply to financial reporting.
B20 · Tier 2
The Australian Accounting Standards Board is the standard setter that issues the Australian Sustainability Reporting Standards, including AASB S2 Climate-related Disclosures.
B21 · Tier 2
The Auditing and Assurance Standards Board issues the standards governing audit and assurance in Australia, including ASSA 5000 and ASSA 5010 for sustainability assurance, and ASAE 3000 and ASAE 3410 for other assurance engagements.
B22 · Tier 2
The Accounting Professional and Ethical Standards Board issues the ethical and professional standards binding Australian accountants, including APES 110 Code of Ethics and APES 305 Terms of Engagement.
B23 · Tier 1 · differentiator
Chapter 2M of the Corporations Act 2001 is the part of the Act governing financial records, annual financial reports, sustainability reports, audit and lodgement.
B24 · Tier 1 · differentiator
A sustainability reporting exemption is any basis on which an entity above the size thresholds is not required to prepare a sustainability report.
B25 · Tier 1 · differentiator
Lodgement is the filing of the sustainability report and the auditor’s report on it with ASIC after the financial year ends.
B26 · Tier 1 · differentiator
AASB S2 Climate-related Disclosures applies to annual reporting periods beginning on or after 1 January 2025.
All glossary clusters
B · Regulation, capture and thresholds / Regulation, capture and timing