Financial reporting thresholds for large proprietary companies to increase

Changes to the financial thresholds that determine when a private company is considered 'large' for reporting purposes were approved by Treasurer Josh Frydenberg on 5 April 2019. The amendments to the Corporations Regulations 2001 will relieve the reporting burden on small to medium sized enterprises by increasing the thresholds that dictate whether a company has to lodge annual financial reports, directors’ reports, and auditors’ reports or have whistle-blower policies in place.

The thresholds, which had previously not been reviewed since 2007, will be doubled by:

• increasing the annual consolidated revenue threshold from $25 million to $50 million or more
• increasing the value of gross assets from $12.5 million to $25 million or more
• increasing the employee size from 50 to 100 employees or more.

The changes will apply from 1 July 2019.

For further analysis on the changes, you can read our previous article: Changes to financial reporting for large proprietary companies.

Author: Georgia Milne 

Contacts:

Sydney
Darren Pereira, Partner 
T: +61 2 8083 0487 
E: darren.pereira@holdingredlich.com

Brisbane
Trent Taylor, Partner
T: +61 7 3135 0668
E: trent.taylor@holdingredlich.com

Melbourne
William Khong, Partner 
T: +61 3 9321 9883
E: william.khong@holdingredlich.com

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