Proprietary companies should consider their financial reporting obligations following recent increases to the thresholds for determining large proprietary companies. The Corporations Act requires 'large' proprietary companies to lodge an annual financial report, a director's report and an auditor's report with ASIC. Small proprietary companies are generally not required to lodge these documents and are only required to keep appropriate financial records.
From 1 July 2019, the thresholds have doubled and a proprietary company is considered 'large' for a financial year where it satisfies at least two of the following three thresholds—$50 million or more in consolidated revenue (previously $25 million); $25 million or more in consolidated gross assets (previously $12.5 million); or 100 or more employees (previously 50 or more).
This change means fewer companies will be required to lodge their financial records with ASIC.