Big firms would stop reporting suppliers' pollution
Big companies must now report their climate pollution each year. This private bill from Senator Jane Hume would drop the hardest part, called Scope 3. It would also let a group of smaller firms off reporting at all.
Official name: Treasury Laws Amendment (Scrapping Scope 3) Bill 2026
- Companies would no longer have to report Scope 3 pollution. That is pollution made by their suppliers, customers and others.
- Smaller firms in the third group would not have to write climate reports at all.
- The new cut-offs would be $200 million in sales, $500 million in assets or 250 staff.
- Senator Jane Hume brought it into the Senate on 14 October 2026.
Who it affects
- Big companies that write climate reports: They would no longer have to count or report pollution made by others in their supply chain.
- Smaller companies in the third group: They would drop out of climate reporting before their start date of 1 July 2027.
- Small businesses that sell to big companies: They may get fewer requests for pollution figures from their big customers.
- Shareholders and the public: They would get less information about the climate pollution linked to some companies.
Counting other firms' pollution
Senator Jane Hume brought this bill into the Senate on 14 October 2026. It is a private bill. That means a member of Parliament brought it in, not a minister.
Under the Corporations Act 2001, many companies must now write a sustainability report each year. This report covers climate risks and the greenhouse gas pollution linked to the company. Greenhouse gases warm the planet.
Companies were split into three groups. The biggest went first. The third group are the smallest firms in the system.
Pollution is sorted into types called scopes. Scope 3 is pollution made by others because of the company. That includes suppliers, customers and other outside firms.
The senator's notes on the bill say Scope 3 is hard and costly to measure. The company often has little control over the figures. The notes say the rules also hit small firms. Big customers ask them for pollution figures, even though the law does not cover them.
No more Scope 3 reports
The bill would remove the rule that sustainability reports include Scope 3 pollution.
It would also delete two terms from the law. One is Scope 3 greenhouse gas emissions. The other is financed emissions. That is pollution linked to the loans and money a company provides.
Say a supermarket chain sells milk. Today it may have to estimate the pollution from dairy farms that supply it. Under this bill, it would not have to.
The notes quote a government study. It found Scope 3 work alone would cost each company about $245,000 in the first year. After that it would cost about $161,700 a year.
Smaller firms let off
The bill would change the cut-offs for the third group. They would match the cut-offs for the second group.
The new tests are about size. One is yearly sales of $200 million or more, counting any firms it controls. One is assets worth $500 million or more at year end. One is 250 or more staff at year end.
Firms below those lines would no longer have to report. The notes say this takes the third group out of the system.
The notes cite a report by the Liberal and National parties, called the Coalition. It said setting up reports could cost these firms $30,000 to $70,000 in the first year. Then it could cost $20,000 to $40,000 a year, plus checks by auditors. Auditors are experts who check a company's figures.
That report also cited a government estimate. It said only 5 per cent of these firms would have big climate risks to report.
Start dates and legal cover
The law now has two settling-in periods for the new reports. The bill would swap these for one period.
It would only apply to firms whose report year started on 1 January 2025 or 1 July 2025. It would end on 30 June 2026.
The bill would remove the start rule for the third group. Their reports were due to begin for years starting on or after 1 July 2027.
The law now gives companies some protection from being sued over Scope 3 statements. With no Scope 3 reports, the bill would remove that protection too. Other protected statements stay.
Waiting in the Senate
The changes would start the day after the bill is signed into law by the Governor-General. The Governor-General is the King's representative.
On 14 October 2026 the senator brought the bill into the Senate. She also moved the vote on its main idea that day. That vote has not been held yet.
The Senate would need to pass the bill. Then the House of Representatives would need to pass it too. Private bills often wait a long time and many never get a vote.
Its journey through Parliament
| 14 Oct 2026 | Senate: Introduced and read a first time |
| 14 Oct 2026 | Senate: Second reading moved |