Frequently Asked Questions
1) For a company, what makes it large?
For proprietary companies, the Corporations Act 2001 defines whether a company is a large or small company.
A proprietary company is a large proprietary company if it meets at least 2 of the following:
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Consolidated revenue of the company exceeds $25 million;
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Consolidated gross assets of the company exceed $12.5 million at the end of the financial year;
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Employees over 50 at the end of the financial year.
A small proprietary company will be any proprietary company that doesn’t meet the at least two of the above thresholds. A small proprietary company has reduced financial reporting requirements.
2) What are the audit requirements of my Not-for-Profit
The Australian Charities and Not-for-Profit and Commission (ACNC) outlines the reporting and audit requirements for Charities and NFPs, summarised as follows:
Small (annual revenue under $250,000) – Must lodge Annual Information Statement, no audit or review requirement.
Medium (annual revenue between $250,000 and $999,999) – Must lodge Annual Information Statement, have a review or audit and lodge financial report with ACNC.
Large (annual revenue of $1 million or more) – Must lodge Annual Information Statement, have an audit and lodge financial report with ACNC.
Remember these lodgements are due to be lodged within 6 months of your year end.
Full explanation of these requirements are here.