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16 Nov. 2018

Treasury proposals to increase thresholds for small/large companies

In a joint media release by the Hon Josh Frydenberg MP – Treasurer of the Commonwealth of Australia and Senator the Hon Michaelia Cash – Minister for Small and Family Business, Skills and Vocational Education, the Government have proposed to increase the thresholds for determining what constitutes a large proprietary company under the Corporations Act 2001.


The Government has also released exposure draft regulations and an explanatory statement for public consultation. Responses to this consultation are invited by 14 December 2018.


Kris Peach, Chair of the Australian Accounting Standards Board commented “The Australian Accounting Standards Board welcomes the Minister’s announcement of proposals to increase the small/large proprietary companies’ threshold. The timing of the review of the threshold is particularly important given the consultation proposals the AASB is currently considering to simplify the Australian financial reporting framework and improve the trust in and transparency of financial reporting.


We encourage users and preparers of financial reports to consider the small/large proprietary companies threshold in conjunction with the proposals to remove the ability for corporate preparers to self assess their financial reporting requirements. The threshold identifies companies of Australian economic significance, which is a criteria that helps determine who prepares general purpose financial statements under current Australian Accounting Standards and is also important to the AASB’s deliberations on the appropriate future financial reporting requirements for such companies.


We look forward to continued collaboration with Treasury as the proposals are further considered.”


The AASB’s consultation to remove special purpose financial statements (ITC 39) can be downloaded via the AASB website.