Today 16 November 2018, Treasury has released a consultation paper seeking views on proposed changes to the ASIC Reporting thresholds.
The Draft regulations, which will not require parliamentary approval once the consultation period concludes on 14th December 2018, will have the effect of doubling each of the current reporting thresholds. A company which meets two of the three thresholds is required to comply with financial reporting and audit requirements.
The Thresholds are adjusted as below:
|Requirement||Current Regulation||Proposed Regulation|
|Consolidated Revenue for the financial year||$25 million||$50 million|
|Consolidated gross assets at end of financial year||$12.5 million||$25 million|
|Company and controlled entities have at end of financial year||50 employees||100 employees|
The Government suggests that the proposed changes are a form of indexation since the regulations were last reviewed in 2007. If passed, the changes will result in approximately 2,200 companies no longer being classified as Large Proprietary Companies and therefore will not be required to prepare and lodge with ASIC a financial report and a directors’ report for each financial year.
For more information on what the proposed changes may mean for you, please do not hesitate to contact our office. Below is the link to the Treasury Consultation Paper.
Date of Issue: 19 November 2018 Author: Noé Vicca
Disclaimer: The contents herein are intended for general information only and should not be construed as legal or accounting advice. Vicca Chartered Accountants Brisbane bears no responsibility for any loss that might occur from reliance on information contained in this publication. Please do not reproduce, transmit or distribute the contents herein in any form without prior permission from Vicca Chartered Accountants, Taxation Accountants Brisbane Australia.