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Financial reporting thresholds for large proprietary companies to increase

09 April 2019

#Corporate & Commercial Law

Georgia Milne

Published by Georgia Milne

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.

AuthorGeorgia 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
Etrent.taylor@holdingredlich.com

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

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The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this publication is accurate at the date it is received or that it will continue to be accurate in the future. We are not responsible for the information of any source to which a link is provided or reference is made and exclude all liability in connection with use of these sources. 

Georgia Milne

Published by Georgia Milne

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