Large Proprietary Company

Australia is made up of a substantial amount of small businesses. Most of the time the reporting standards are quite simple and only have to adhere to lodging documents with the Australian Taxation Office.

Certain business are set up and structured in complex ways whether it be to be tax efficient or just as it was the wishes of the individual. The main concern is that if ultimately a group of entities are owned and controlled by the same company, it may meet the definition of a large proprietary company.

A company is considered to be large if it meets at least two of the following criteria:

• Consolidated revenue is greater than $25 million
• Consolidated net assets is greater than $12.5 million
• Employs greater than 50 employees

If the company does fail two or more of the above mentioned items, it will not be considered a large proprietary company.

The financial reports of this company that has ultimate control will have to lodge financial statements with the Australian Security and Investments Commission (ASIC). These reports will have to comply with accounting standards. These financials are required to be audited and lodged by the 31^st of October along with quarterly management accounts in certain circumstances.

Require more information? Please contact PBD Partners to discuss any queries you may have.

If you believe you or someone you know falls under these conditions, please feel free to make an appointment with Pio to discuss what can be done going forward.