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ARTICLE · 26 NOVEMBER 2018

Changes to financial reporting for large proprietary companies

Holding Redlich
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Draft regulations change the definition of a 'large' proprietary company, by raising the financial reporting thresholds.

AustraliaCorporate/Commercial Law
Georgia Milne
Georgia Milne
Darren Pereira
Darren Pereira
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From 1 July 2019, thousands of private companies may be relieved of certain financial reporting obligations under the Corporations Act 2001 (Cth).

In an announcement on 16 November 2018, Treasurer Josh Frydenberg confirmed the Government's proposal to amend the financial thresholds that determine when a private company is considered 'large', thereby reducing the financial reporting burden on small to medium-sized private companies. The current thresholds have not been reviewed since 2007.

What are the key changes?

Under the current regime, 'large' proprietary companies must lodge a financial report, director's report and an auditor's report with ASIC each financial year. Smaller proprietary companies, on the other hand, are merely required to keep written financial records.

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This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

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