Company reporting thresholds

The Federal Government is considering a review proposal aimed at reducing the regulatory burden and excessive red tape. It will apply to the corporate and financial services sectors in the areas of:

	Financial services regulation
	Company reporting obligations
	Auditor independence
	Corporate governance
	Fundraising
	Takeovers
	Compliance

One of the changes will be to alter the definition of a large proprietary company, including all entities that it controls. It is considered that the current thresholds are too low and place an unnecessary regulatory burden on some companies. A large proprietary company is currently defined as satisfying at least 2 of the following tests:

	Annual consolidated gross operating revenue of $10 million or more
	Consolidated gross assets of $5 million or more or 50 or more employees.

The new definition proposes that a large proprietary company satisfies at least one of the following:

	Annual consolidated gross operating revenue of $25 million or more
	Consolidated gross assets of $12.5 million or more

This proposed change reflects the Government’s intention to increase the thresholds for the definition of a large proprietary company to a level which represents genuine economic significance. We will keep you informed on these changes.

Published : 20 February 2007