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.
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