On 18th May 2026,Australia’s federal government proposed sweeping corporate reporting reforms in its 2026 Budget, aiming to slash aggregate regulatory burdens by $10.2 billion annually. A primary legislative mechanism involves doubling the size thresholds for mandatory audited financial and sustainability reporting for smaller corporate entities. Under the revised framework, the reporting thresholds will increase from $50 million in revenue and $25 million in assets to $100 million and $50 million, respectively, while retaining the 100-employee baseline and companies meeting at least two thresholds are considered within the scope of the reporting obligations.This structural adjustment substantially contracts the volume of smaller enterprises subject to the mandatory climate disclosure regime slated for 2027 phase-in. Furthermore, the government intends to consult on optimizing climate-related financial disclosure efficiencies to alleviate small-business compliance costs. Ultimately, these measures focus directly on defining “undue cost or effort” parameters, adjusting corporate assurance settings, and establishing clear boundaries on supplier information requests across the value chain.
Sources::https://www.esgtoday.com/australia-proposes-removing-smaller-companies-from-sustainability-financial-reporting-requirements/