Australian Securities & Investments Commission launches broader surveillance on financial report non-lodgement after 755 of 1,166 formerly grandfathered companies failed to file

The Australian Securities & Investments Commission (ASIC) has stepped up its reviews and launched a broader surveillance program targeting non-lodgement of financial reports by large proprietary companies, after finding widespread non-compliance among companies that previously benefited from “grandfathered” lodgement relief. Since the exemption was removed in 2022, formerly grandfathered entities that remain large proprietary companies have been required to lodge financial reports with ASIC, but ASIC found that 755 of 1,166 did not lodge in FY23 or FY24. Inquiries into 58 companies suspected to be large proprietary companies identified 32 that had failed to lodge, and ASIC also flagged that it did not receive auditors’ notifications of lodgement breaches for most of the organisations identified; while many lodged following ASIC intervention, some reports remain outstanding. The surveillance will focus on large proprietary companies (generally those meeting at least two of the thresholds of consolidated revenue of AUD 50 million or more, consolidated gross assets of AUD 25 million or more, and 100 or more employees), with lodgement deadlines ranging from three to four months after year-end depending on entity type. ASIC expects to complete the broader surveillance in Q1 2026 and said it will use its full range of enforcement and compliance tools in response to non-lodgement, encouraging companies to proactively review and remediate reporting obligations and auditors to report suspected breaches.