Changes to Reporting Thresholds for Large Private Companies
Small business owners will benefit from the changes to what is considered a 'large' private company.
Small business often find the compliance and reporting obligations to be difficult to meet, simply because of the burden it places on staff.
As of 1 July, the definition of a 'large' private company has changed based on the following criteria occurring in the financial year for the company and any of the entities it controls:
- Consolidated revenue is $50 million or more
- Consolidated gross assets are valued at $25 million or more at the end of the financial year
- Has 100 or more employees at the end of the financial year
If a company does not meet at least two of these criteria, then it is considered small and for the most part, exempt from preparing and lodging a financial report and a director's report for each financial year, with audited accounts unless ASIC says otherwise.
There are, however, some circumstances in which small proprietary companies will still have to lodge financial reports.
If you're not sure whether this impacts your business, speak to your accountant on 02 9957 4033 or email your enquiry to the team so that we may review whether you may still need to report.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.