Under Chapter 2M of the Corporations Act 2001, an entity must prepare a sustainability report if it already has to prepare an annual financial report and meets one of the sustainability reporting thresholds in section 292A.
Section 292A captures three main gateways: entities meeting at least two of the size thresholds, NGER reporters or entities required to apply to be registered under the NGER Act, and certain registered schemes, registrable superannuation entities and retail CCIVs above the prescribed asset threshold.
The base statutory thresholds in section 292A are at least two of: consolidated revenue of $50 million or more, consolidated gross assets of $25 million or more, and 100 or more employees, unless regulations prescribe different amounts.
The same section also captures registered schemes, registrable superannuation entities and retail CCIVs with assets of $5 billion or more, as well as entities drawn in through the NGER gateway.
The regime is phased. AASB and ASIC materials explain that Group 1 entities start for annual reporting periods beginning on or after 1 January 2025, Group 2 on or after 1 July 2026, and Group 3 on or after 1 July 2027.
That means reporting readiness has to be built before the first year-end, because governance, controls, and evidence collection begin well before the report is lodged.
ASIC states that the Australian Parliament has prioritised climate-related financial disclosures. At present, climate information is the mandatory component of the sustainability report.
In practice, many organisations will still need to coordinate broader ESG inputs because supplier-risk, transition planning, and governance evidence are often assembled across the same reporting teams.
Official sources
For detailed and current requirements, use the Corporations Act, ASIC sustainability reporting guidance, AASB materials, and other relevant Australian regulators.