Setting Up a Business in Australia. Accounting Requirements

Australia is a great place for business. However, like in any other country, there are things you need to know about doing business onshore.

This article outlines regulations concerning company accounts and audit procedures in Australia. You can read the ‘How to Set up a Business in Australia’ full article here. You can download the complete BridgePoint Doing Business in Australia Guide here.

Financial Reporting

All disclosing entities, including public companies, large proprietary companies, and registered managed investment schemes, are required to prepare financial statements that comply with the Australian Accounting Standards (AASB). The AASB are based on International Financial Reporting Standards (IFRS), and they set out the requirements for preparing, presenting, and disclosing financial information. The financial reports must consist of:

Statement of financial position
Statement of profit and loss
Statement of cash flow
Statement of change in equity
Notes to the financial statements
Directors’ declaration
Directors’ report

The financial reports must be prepared for each financial year, and they must be lodged with the ASIC within four months of the end of the financial year.

Record Keeping

All companies are required to keep financial records that accurately record their financial transactions and which would enable the preparation of financial statements and the audit of those financial statements. The financial records must be kept for a period of at least seven years.

Audit

Public companies, large proprietary companies, and any other company that ASIC directs, are required to have their financial reports audited by an independent auditor. The auditor is responsible for expressing an opinion on whether the financial report is free from material misstatement. The auditor’s report must be lodged with ASIC within four months of the end of the financial year.

Small Proprietary Companies

Small proprietary companies are not required to have their financial reports audited. However, they are still required to prepare financial statements and keep financial records. The financial statements must be prepared for each financial year, and they must be kept for a period of at least seven years.

Penalties for Non-compliance

Failure to comply with the requirements relating to company accounts and audit procedures can result in penalties, including fines and imprisonment. ASIC also has the power to disqualify directors of companies that fail to comply with these requirements.

Doing Business in Australia with BridgePoint Group

BridgePoint Group offers a comprehensive solution. From corporate structuring and tax advice, employing and remunerating staff, local representation to maintaining systems of control and reporting. We help you to successfully navigate the regulatory and operational landscape. We are familiar with Standard Business Reporting (SBR); Significant Global Entities (SGEs); Country-by-Country Reporting (CbC); Transfer Pricing; Thin Capitalisation; Single Touch Payroll (STP) and Director Identification Numbers.

We provide advice in respect of the Corporations Act, Trade Practices Act, National Employment Standards, Fair Work Act, Trade Marks Act, Privacy Act and the various State and Federal acts relating to taxation including Income Tax, Capital Gains Tax, Payroll Tax, Land Tax, Goods and Services Tax (GST) and the requirements to withhold tax from payment of dividends, interest and royalties.
We regularly interact with the Australian Taxation Office (ATO), Australian Securities and Investment Commission (ASIC), the Foreign Investment Review Board (FIRB), the Australian Competition & Consumer Commission (ACCC) and various State Revenue Offices around the country.

What makes us different

One stop shop
We offer a comprehensive and holistic approach to supporting international companies – including Significant Global Entities (SGEs) – in their expansion efforts, ensuring a smooth entry into the Australian market whilst carefully navigating the complexities of local regulations and business practices.

Local Knowledge and Market Insights
Venturing into a new market abroad can entail considerable expenses, time, and risks. Our dedication to clients extends beyond offering accounting and regulatory services. We provide comprehensive support by offering market insights and local assessments, empowering you to make well-informed decisions.

Unique Method
We employ a team-based, cross-functional approach to ensure you get the full benefit of our collective capability.

Results-Driven
We partner with our clients with an owner’s mentality.

Commercial Acumen
We understand the drivers of your success and help you to tackle the things that make the difference.

Broad Capabilities
We have a diverse team of highly trained experts selected to support every stage of your business journey.

What to expect from us

A highly experienced team that will tell you everything you need to know about doing business in Australia.
Clarity about obligations when employing and paying people in Australia including PAYG withholding, reporting, payment, superannuation and workers’ compensation insurance.
Corporate structuring advice and establishment.
Taxation advice and registration including ABN, TFN, FBT, Payroll tax, PAYGW and GST.
Opening a local bank account.
Local knowledge and representation including directorship, ATO, ASIC and OSR agency.
Advice regarding the Tax Act, Corporations Act, Trade Practices Act, Privacy Act.
Selection of compliant accounting software.
Preparation of management reporting packs.
Ongoing advice and support including pro-active communication.

We assist overseas headquartered companies to achieve a smooth entry into the Australian market whilst carefully navigating the complexities of Australia’s legal, regulatory and commercial environment. Our services are built on the strong foundation of a deep understanding of the numbers, with accounting, finance and business strategy at the core.

If you would like assistance in setting a business in Australian, or to find out more about the benefits of doing business in Australia with BridgePoint Group, download the complete Doing Business In Australia Guide here or contact us directly.