Treasury has released a proposal to double the financial reporting lodgement thresholds for large Australian proprietary companies. The proposal, outlined in the draft Corporations Amendment (Proprietary Company Thresholds) Regulations 2018, aims to maintain financial reporting obligations for economically significant companies but reduce the requirements for smaller companies.

Under the new proposal, a proprietary company would be considered large (and therefore maintain financial reporting and audit/review obligations) if it satisfies at least two of the following criteria:

• Consolidated revenue is $50 million or more (for the financial year of the company and any entities it controls).  This is an increase of $25 million from the present threshold;
• The value of the consolidated gross assets is $25 million or more (at the end of the financial year of the company and including any entities it controls).  This is an increase of $12.5 million from the present threshold; and,
• The company and any entities it controls have 100 or more employees at the end of the financial year (increase of 50 employees).

Treasury consultation with  closes on 14 December 2018.  The planned application date, if the draft amendments are accepted, is for financial years beginning on or after 1 July 2019.