Australia is a state in the southern hemisphere, occupying the continent of the same name. The official form is the Commonwealth of Australia. Highly developed post-industrial state, attractive for investments. It is an open market with minimal restrictions on imports of goods and services. Australia has a global principle of taxation: resident companies pay tax on worldwide profits, while non-resident companies pay tax on profits earned in the country or from sources within the country. At the same time, most legal entities are required to submit annual financial statements to the competent state authorities.
According to legislation of Australia, all companies must make financial statements, but not all companies must file accounts with state authorities of Australia. Normally, companies must file accounts if:
According to article 292 of the Corporations Act 2001, the following entities must file financial statements:
The following entities may also be obliged to file financial statements:
Accounts shall be prepared in accordance with the Australian financial reporting standards adopted in 2005, which conform with the requirements of the International Financial Reporting Standards (IFRS).
In certain cases, some companies are exempt from the requirement to provide financial statements, for example, if:
According to article 319 of the Corporations Act, all companies must file accounts within 4 months after the end of the financial period, except for disclosing entities, which must report within 3 months after the end of the financial year.
If a company did not conduct any business, it is still obliged to report on the “zero” period.
The penalty for late filing of accounts is 900 AUD for small entities and 4,500 AUD for large entities.
Audit is compulsory for large companies until they are exempt from filing by ASIC.
To be considered large a company must meet 2 of the following conditions:
If an Australian corporation has subsidiaries, it must prepare consolidated financial statements and file them with ASIC.
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