ASIC Targets Non-Compliance in Financial Report Lodgements

ASIC has intensified its oversight after discovering that more than half of formerly “grandfathered” large proprietary companies failed to lodge financial reports in FY23 and FY24. The exemption that once allowed these companies to keep audited statements private was removed in August 2022, yet 755 out of 1,166 did not comply. ASIC also noted that auditors frequently failed to report breaches as required.

In response, ASIC has launched a broader surveillance program on financial report lodgements, set to conclude in Q1 2026. The regulator has warned that it will use its full enforcement powers against persistent non-compliance, stressing that timely and transparent reporting is vital to maintain investor confidence and the integrity of Australia’s financial system.