Insights

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. 
 
We reported on the proposed changes in our November 2018 article Government proposes changes for financial reporting

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 article has been published by Colin Biggers & Paisley for information and education purposes only and is a general summary of the topic(s) presented. This article is not specific legal or financial advice. Please seek your own legal or financial advice for any questions you may have. All information contained in this article is subject to change. Colin Biggers & Paisley cannot be held responsible for any liability whatsoever, or for any loss howsoever arising from any reliance upon the contents of this article.​

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