ASIC Responsibilities ForCompanies Large and Small

‍ASIC defines companies as being either ‘large’ or ‘small’ and the criteria was recently updated for years commencing 1 July 2019 and onwards. If your company satisfies at least TWO of the following criteria, it will be a ‘large’ company according to ASIC:

• The consolidated revenue for the financial year of the company and any entities it controls is $50 million or more;
• The value of the consolidated gross assets at the end of the financial year of the company and any entities it controls is$25 million or more; and
• The company and any entities it controls have100 or more employees at the end of the financial year.

If your company ticks at least two of these, it will be considered a large proprietary company, and this means it must prepare and lodge a financial report with ASIC each financial year it is determined large.The accounts must also be audited unless ASIC grants audit relief.

If the company does not meet at least two of the above criteria, it will be considered 'small'. In some circumstances, however, small proprietary companies may also have to lodge financial reports (more on this below!)

Reporting obligations of a large proprietary company

There are a few different types of large companies, and each type can have its own reporting obligations, so as director you must be fully aware of how your company might be treated. The ASIC website is a good place to start.

Generally, a large proprietary company must prepare annual financial reports in accordance with Chapter 2M of the Corporations Act. These financial reports must also be:

-      Audited;

-      Lodged with ASIC within four months of the financial year end; and

-      Sent to members within four months of the financial year end.

If your year ends on 30 June, this means you must have audited financial reports ready to go by 30 October each year. If you operate on a calendar year, your due date will be 30 April.

What about the small proprietary companies?

Generally, small proprietary companies are off the hook when it comes to ASIC reporting obligations unless you fall into one of the following three categories:

1. Small proprietary companies controlled by a foreign company;
2. Small proprietary companies where ASIC requests a financial report; or
3. Small proprietary companies where shareholders requests a financial report.

If you think you fit into one of these categories, As a start, you can check out the ASIC website for more information here, or please touch base with the Attune team so we can ensure you’re meeting your obligations.

We’re here to give you and your business sound, strategic advice when you need it. Call Attune on 1300 866 113 or send us an email to start the conversation. 

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