Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 – Update
On 12 January 2024, the Federal Government commenced a consultation process on Exposure Draft legislation seeking to amend parts of the Australian Securities and Investment Commission Act 2001 and the Corporations Act 2001 (Cth) to introduce mandatory requirements for large businesses and financial institutions to disclose their climate-related risks and opportunities.
Following the consultation period, the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 was introduced into Parliament and passed the House of Representatives on 6 June 2024. It subsequently passed the Senate on 22 August 2024. The final steps are for passing by the House of Representatives, as amended by the Senate, and then to receive Royal Assent. This is expected to occur within the next few weeks.
The legislation aims to give effect to the new mandatory climate-related financial disclosure reporting requirements under Standards proposed by AASB. It aims to establish a standardised, internationally aligned regime for mandatory disclosure of climate-related risks and opportunities for large businesses.
When assented to, the mandatory reporting regime will commence on 1 January 2025 with the first group of reporting entities required to report for financial years beginning on or after 1 January 2025.
ASIC has indicated that it will release guidance for companies once the Bill receives Royal Assent. It has also cautioned that it will be prepared to take enforcement action to ensure compliance.