A future Coalition Government will scrap climate reporting red tape which is making life harder for Australian businesses.
The Liberals and Nationals will today introduce the Treasury Laws Amendment (Scrapping Scope 3) Bill 2026 to the Senate to mandatory Scope 3 emissions reporting and remove Group 3 entities from mandatory sustainability reporting, cutting unnecessary compliance costs for Australian businesses.
Labor’s own Treasury estimated Scope 3 emissions modelling alone could cost around $245,000 per entity in the first year, and more than $160,000 annually thereafter.
From July 2027, Group 3 entities will enter the climate reporting regime and face estimated costs of up to $70,000 in the first year alone.
Australian businesses are already dealing with high costs, high taxes, high energy prices, and too much red tape. They don’t need another layer of expensive paperwork.
Leader of the Opposition Angus Taylor it is absurd to force Australian businesses to report on emissions they cannot control, using data they often cannot access, at a cost running into hundreds of thousands of dollars.
“Businesses should be focused on employing Australians, investing and growing, not spending a fortune trying to calculate emissions across their supply chains.
“Anthony Albanese should follow the Coalition’s lead and scrap his latest business burden tax, giving businesses certainty before it comes into effect next year.
“This builds on the Coalition’s announcement to ensure no Australian government can use Scope 3 emissions from Australian exports being used overseas to delay or block approval of a resources project.”
Leader of The Nationals Matt Canavan said the High Court's decision has already overturned the approval for the Mount Pleasant expansion, putting future investment and employment under a cloud of uncertainty.
“Australian mining projects should not be held hostage to emissions from coal burned in Japan, Korea or Chinese power stations,” Senator Canavan said.
“If Australia cannot export coal, our partners will simply look elsewhere, while thousands of jobs will be lost as a result and our prosperity as a nation suffers another hit.”
Deputy Leader of the Opposition Jane Hume said Australia cannot regulate its way to prosperity.
“These reporting obligations don’t stop with the large corporations, they cascade through supply chains, forcing smaller businesses to provide complex emissions information to their larger customers.
“This all comes at a cost. It is money that could be spent employing Australians, purchasing equipment or expanding operations.
“The Coalition has a plan to cut red tape, lift productivity and make life easier for Australian businesses, because our businesses should be driving Australia’s prosperity, not being held back by Labor’s bureaucracy.”
Shadow Treasurer Tim Wilson said the Albanese Government is engaging in trickle down regulation from big onto small business.
“If a local motel wants to provide rooms to a corporate, it shouldn’t have to hand over a scope 3 emissions report.
“Canberra is designing laws as if every corner store, motel and home business has an HR department, a legal team and a compliance division sitting behind it. They don't. They just want to get on with running their business and supporting their families."