Australian companies, including foreign-owned businesses, face increased scrutiny over financial reporting as ASIC targets late and missing reports as part of its 2026 enforcement priorities.
Financial reporting obligations for foreign-owned companies
Large and small proprietary companies that are controlled by a foreign company have financial reporting obligations under the Corporations Act 2001. Both must prepare and lodge annual financial reports with ASIC.
A proprietary company is classified as large when it meets at least two of these criteria for a financial year:
consolidated revenue of $50 million or more;
consolidated gross assets of $25 million or more; and
100 or more employees.
These thresholds apply to the company and any entities it controls.
Other entities required to prepare and lodge financial reports include public companies, registered managed investment schemes and registrable superannuation entities.
ASIC makes financial reporting a 2026 enforcement priority
ASIC has identified financial reporting misconduct, including failing to lodge financial reports, as one of its 2026 enforcement priorities.
The regulator began broad surveillance of late and non-lodgement of financial reports in August 2025. Since then, ASIC has issued 27 infringement notices totalling more than $5 million for alleged financial reporting breaches.
ASIC Commissioner Kate O’Rourke said: ‘We remind companies required to lodge financial reports that they must generally lodge within four months after the end of the financial year. Disclosing entities and registered schemes generally have three months.’
Ms O’Rourke said ASIC has issued infringement notices against companies across retail, hospitality and logistics and will continue targeted, data-driven surveillance of companies that lodge late or fail to lodge.
ASIC has urged reporting companies to ensure their FY26 financial reports are prepared, audited and lodged on time.
Enforcement has affected companies across industries
ASIC’s enforcement activity shows that financial reporting compliance is not limited to one industry or type of company. The regulator has issued more than $2.2 million in infringement notices against 12 large proprietary companies for alleged failures to lodge financial reports. Other actions include $594,000 against Mecca companies, $792,000 against Canva Group companies and $596,000 against companies operating under the Zara, H&M and Sephora brands.
ASIC has also obtained more than $1.1 million in court-imposed fines against three public companies for breaches involving financial reporting and related company officer obligations.
More recently, three Mainfreight Group companies each paid a $198,000 infringement notice, bringing the total to $594,000, after allegedly failing to lodge their financial reports for the year ended 31 March 2025 by the 31 July 2025 deadline.
Why timely lodgement matters
ASIC’s enforcement actions demonstrate the importance of meeting financial reporting deadlines for companies with a lodgement obligation. Companies should establish whether they must lodge financial reports, confirm their applicable deadline and allow enough time for preparation, audit and board approval.
For foreign-owned Australian companies, this includes determining whether the Australian subsidiary is a large proprietary company or a small proprietary company controlled by a foreign company that must prepare and lodge financial reports.
How ABN Australia can help
ABN Australia can help you understand your foreign-owned company’s Australian financial reporting obligations and manage its ASIC compliance requirements, including annual financial report preparation and lodgement. Contact ABN Australia to discuss your company’s Australian reporting obligations and compliance requirements.
Last updated: 19th Aug 2026
About the Author
Ro Elvinia is ABN Australia's Customer Success and Marketing Manager. She holds a bachelor’s degree in mass communication, majoring in journalism, and also has an academic background in civil engineering. With over a decade of experience in professional writing and a background spanning journalism, Australian immigration, and business services, Ro brings a unique mix of communication and analytical expertise. She works closely with international clients and contributes to ABN Australia's content strategy, helping global businesses stay informed and confident as they navigate the Australian market.
Ro Elvinia
Customer Success and Marketing Manager