A large proprietary company is under a statutory obligation to lodge its audited accounts with ASIC annually.
As from 1st July, 2019, the thresholds which determine whether a proprietary company is classed as small or large have moved upwards.
In 1995, as part of the “simplification” of company legislation, the concept of a small proprietary company and a large proprietary company was introduced by the creation of Section 45A. That section required “large proprietary companies” to lodge their audited accounts with ASIC on an annual basis but exempted “small proprietary companies”.
A proprietary company is determined as being small or large based on it falling below or above two of three thresholds. The original thresholds which applied from 9th December, 1995 were most recently increased in 2007 and, as from 1st July, 2019, they have been increased again. This will enable thousands of companies to dispense with the costs of an audit and will enable their financial performance to be kept private.
The new thresholds are:-
- consolidated revenue at $50 million more
- consolidated gross assets at $25 million
- 100 employees
If a company exceeds two of the above three thresholds, that company will meet the definition of a large proprietary company. The government expects that approximately one third of companies previously classed as large proprietary companies will now be classed as small proprietary companies.
Please call us on 03 9899 9300 if you require further information regarding the classification of proprietary companies.