In brief: Proposed changes will increase the thresholds
for determining what constitutes a large proprietary company under
the Corporations Act 2001 (Cth)
On Friday 16 November 2018, the Treasury released for
consultation, exposure draft regulations to the Corporations
Regulations 2001 as well as an explanatory statement. The
exposure draft regulations contain proposals to reduce the
financial reporting burden for some proprietary companies which
will help reduce costs for smaller proprietary companies.
The announcement is contained here
and implementation of the changes is subject to consultation.
The new threshold test - what constitutes a large proprietary
company?
Currently, there are a number of threshold tests to determine
whether a company is considered a large proprietary company. The
exposure draft regulations propose to make a number of changes to
these thresholds, namely:
