ASIC Annual Review: Avoid These 7 Costly Mistakes

Every year, on the anniversary of your company's registration, ASIC issues an Annual Company Statement. Ignoring this or handling it incorrectly is one of the most common compliance failures for Australian businesses.

What is the Annual Review?

The Annual Review is ASIC's way of ensuring the details they hold on the public register (directors, addresses, shareholders) are correct. It also triggers the annual review fee.

The 7 Most Common Mistakes

1. Thinking "Nothing Has Changed" Means "Do Nothing"

Even if your details haven't changed, you are still required to pass a solvency resolution (see #3) and pay the annual fee. Doing nothing is not an option.

2. Ignoring the Email/Letter

ASIC no longer sends paper statements by default. If you (or your agent) miss the email notification, you will miss the deadline. Always ensure your contact details with ASIC are up to date.

3. Forgetting the Solvency Resolution

The Directors must pass a resolution declaring that, in their opinion, the company can pay its debts as and when they fall due. This must be stored in your company records. Failure to do so is a breach of the Corporations Act.

4. Paying Late

The payment deadline is typically 2 months after the review date. Late fees are automatic and increase over time:
- Up to 1 month late: $96
- More than 1 month late: $401

5. Not checking the details carefully

Small typos in addresses or names can cause legal headaches later. Use the Annual Statement to double-check every detail on the register.

6. Late Change Notifications

If you realize a detail is wrong (e.g., a director moved house 6 months ago), notifying ASIC now will likely trigger a late lodgement fee for the Form 484. Changes must be notified within 28 days.

7. Assuming Your Accountant Handled It

Unless you have specifically engaged your accountant or a corporate secretarial firm (like CorpArray) to act as your ASIC Agent, they may not be receiving your correspondence. Never assume.