Four guides for CFOs, financial controllers and company secretaries working out what Australia’s mandatory climate reporting means for a Group 3 entity. Each one cites the Corporations Act, ASIC Regulatory Guide 280, AASB S2 or ASSA 5010, and flags what is still only proposed.
Under current law, you are in Group 3 if you must prepare a Chapter 2M financial report, you meet at least two of three size tests at year end (A$50m revenue, A$25m gross assets, 100 employees), and you are not already caught by the larger Group 1 or Group 2 tests. Reporting starts with financial years beginning on or after 1 July 2027.
Section 296B(1) lets a Group 3 entity with no material climate-related financial risks or opportunities lodge two short statements instead of full AASB S2 disclosures. It still needs an AASB S2 assessment, records kept for 7 years, a directors’ declaration, a review by the auditor and a fresh assessment every year.
A Group 3 climate materiality assessment under AASB S2 means setting the reporting entity and time horizons, mapping operations and the value chain, identifying physical risks, transition risks and opportunities using reasonable and supportable information, judging materiality from the point of view of primary users, and recording each judgement.
Group 3 climate reporting applies to financial years starting on or after 1 July 2027. A 30 June entity’s first year runs to 30 June 2028 and a non-disclosing entity lodges by 31 October 2028. Assurance is a review in years 1 to 3 and an audit for years starting on or after 1 July 2030.
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General information only. This is not legal, accounting or assurance advice. The kit and this website don’t take account of your circumstances. Whether your entity has no material climate-related risks or opportunities depends on your own facts and the judgement of your directors. Confirm your approach with your auditor or adviser before relying on it. Using the kit doesn’t guarantee compliance or any audit outcome.
The 2026–27 Budget proposal to lift the thresholds to A$100m revenue and A$50m gross assets is proposed, not law. Law and sources last verified 22 October 2026.