Corporate DeskSign inSign up

Business

Australia — Business: Accounting

Companies registered in Australia are governed by the Corporations Act 2001, with accounting standards set by the Australian Accounting Standards Board (AASB). Contrary to a common misconception, not every business needs an auditor — a mandatory annual audit applies mainly to "large" proprietary companies (broadly, meeting at least two of: consolidated revenue over AUD 50 million, consolidated gross assets over AUD 25 million, or 100+ employees), public companies, and certain regulated entities. Most small proprietary companies and sole traders have no statutory audit requirement, though all businesses must keep adequate financial records for the ATO.

VerifiedGovernment / official sourceASIC and Australian Taxation Office official guidance on financial reporting and business registrationLast reviewed: 2026-08-31

Why this matters

Relocating businesses need to know which reporting and audit obligations actually apply to their size and structure, since over-preparing for an audit that isn't required (or under-preparing when one is) both carry real costs.

Key facts

  • ASIC registration issues the ABN/ACN, but the ongoing obligation to prepare financial reports and, in some cases, have them audited comes from the Corporations Act 2001, not from registration itself.
  • Accounting standards in Australia are set by the Australian Accounting Standards Board (AASB), which are largely aligned with International Financial Reporting Standards (IFRS).
  • A mandatory financial report audit generally applies only to "large" proprietary companies, public companies, and certain other regulated entities — most small proprietary companies (sole traders, small Pty Ltd companies) are exempt from statutory audit, though they must still keep adequate records for tax purposes.

Steps

  1. Register with ASIC and the ATO — Register the business structure with ASIC (for a company, this issues an ACN) and obtain an ABN, then register for relevant taxes (GST, PAYG) with the ATO.
  2. Determine whether an audit is required — Assess whether the company meets the "large proprietary company" thresholds under the Corporations Act 2001 (broadly, two of: revenue over AUD 50 million, gross assets over AUD 25 million, 100+ employees) or is a public company — if so, an audit by a registered company auditor is mandatory; otherwise no statutory audit is required.
  3. Comply with Accounting Standards and record-keeping — Keep accurate financial records (the ATO generally requires records be kept for 5 years) and, where audit or financial reporting obligations apply, prepare statements in accordance with AASB standards.

Costs

  • ASIC company registration fee (Pty Ltd): AUD 636 (2026-27 financial year)
  • Auditor fees (only if the company meets large proprietary/public company audit thresholds): varies by firm and company size; not applicable to most small businesses
  • Bookkeeping/accounting service costs: varies by provider — no government-set fee

Timelines

  • Time to register with ASIC: often same day to a few business days online
  • Financial record retention requirement (ATO): records must generally be kept for 5 years

Required documents

  • Business name and structure documentation
  • Identification documents for directors and shareholders
  • Financial records (invoices, receipts, payroll records) retained for ATO purposes

Common mistakes

  • Assuming an audit is required when the business does not meet the large proprietary/public company thresholds
  • Inadequate financial record-keeping, risking ATO penalties on review

← Back to Australia guides