On 18 September 2025, ASIC reissued Regulatory Guide 34: Auditor obligations: Reporting to ASIC (RG 34) which provides guidance to auditors regarding their reporting obligations under various sections of the Corporations Act 2001 (the Act).
In particular, section 311 requires an auditor to report to ASIC when they have reasonable grounds to believe that there is a significant contravention of the Act. RG 34 now clarifies that non-lodgement of the financial report by any entity is a significant contravention. This is a change from the previous guidance where non-lodgement for only listed or disclosing entities was deemed significant.
This publication outlines the directors’ responsibilities for lodgement of financial reports, the auditor’s reporting obligations to ASIC and the late fees and penalties relating to non-lodgement of financial reports.
Director responsibilities for lodgement of financial statements
Directors should be aware of the following lodgement timeframes for an entity’s financial report as detailed in section 319 of the Act:
ASIC has announced that financial reporting misconduct including failure to lodge financial reports is a 2026 enforcement priority.
Auditor reporting obligations
It is important for directors to note the following auditor reporting obligations relating to non-lodgement of an entity’s financial report.
An auditor is required to notify ASIC in writing as soon as practicable, and in any case within 28 days of having reasonable grounds to suspect a contravention of the Act. Importantly, ASIC notes that rectification of a significant contravention does not remove the auditor’s reporting responsibilities.
Late fees and penalties
Late fees
The following late fees apply per late lodgement of financial statements:
- $98 if up to one month late
- $411 if over one month late
Penalties
Schedule 3 of the Act sets out the maximum penalty for breaching section 319(1) as 120 penalty units. The current value of a penalty unit is $330. For body corporates, this offence also attracts a 10-times loading taking the maximum possible penalty to $396,000.
Recent ASIC enforcement action highlights the stance ASIC is taking when it comes to non-lodgement of financial reports. Notably, twelve large proprietary companies were issued infringement notices for failing to lodge their 2024 financial reports on time. Each company was issued an infringement notice of at least $187,800. See MR25-298 for more information.
Authored by Sai Ravindran – Director Network Risk and Quality.