In brief - Increase to thresholds for determining what constitutes a large proprietary company under the Corporations Act 2001 will apply from 1 July 2019
The Government has approved changes to increase the thresholds for what constitutes a large proprietary company. The changes reduce the financial reporting burden for some proprietary companies which will help reduce costs for smaller proprietary companies.
The new threshold test - what constitutes a large proprietary company?
Thresholds have doubled and from 1 July 2019 will be as follows:
- consolidated revenue for the financial year of the company and the entities it controls increases from $25 million to $50 million
- value of the consolidated gross assets at the end of the financial year of the company and the entities in controls increases from $12.5 million to $25 million or more, or
- number of employees the company and the entities it controls has at the end of the financial year increases from 50 employees to 100 employees or more
The changes for large proprietary company thresholds are also relevant to the recent changes under the Treasury Laws Amendment (Enhancing Whistleblower Protections) Bill 2017
which was passed through Parliament in February 2019. We recently reported on the whistleblower law changes in our article Employers: get ready for new whistleblower protection laws in 2019
Disclaimer: The content of this article does not constitute legal or financial advice to be relied upon.
This is commentary published by Colin Biggers & Paisley for general information purposes only. This should not be relied on as specific advice. You should seek your own legal and other advice for any question, or for any specific situation or proposal, before making any final decision. The content also is subject to change. A person listed may not be admitted as a lawyer in all States and Territories. © Colin Biggers & Paisley, Australia 2021.