Australia's Department of the Treasury has published draft regulations that would raise the monetary thresholds used to classify proprietary companies as large or small. The proposal would increase the consolidated revenue threshold from AUD 50 million to AUD 100 million and the consolidated gross assets threshold from AUD 25 million to AUD 50 million, reducing the number of smaller proprietary companies required to prepare annual audited financial, directors’ and sustainability reports. A proprietary company would remain classified as large if it meets at least two of the three thresholds covering consolidated revenue, consolidated gross assets and employees. The draft also updates the small business guide to reflect the proposed monetary thresholds, consolidated measures and the existing threshold of fewer than 100 employees for a small company. Because the proprietary company thresholds also determine the scope of sustainability reporting, some smaller public companies would no longer be subject to sustainability reporting, although they would remain subject to financial reporting requirements. The amendments would apply to financial years beginning on or after July 1, 2027.
Australia's Department of the Treasury launches consultation on doubling proprietary company revenue and asset thresholds
Australia's Department of the Treasury is consulting on doubling the proprietary company thresholds to AUD 100 million in consolidated revenue and AUD 50 million in consolidated gross assets. The changes would reduce the number of smaller proprietary companies subject to audited financial, directors’ and sustainability reporting and would also remove some smaller public companies from sustainability reporting. They would apply to financial years beginning on or after July 1, 2027.