Timely lodgement is no longer just good practice — it is now a reportable obligation. In September 2025, ASIC reissued Regulatory Guide 34 (RG 34), outlining how auditors must report issues to ASIC. While the policy itself has not changed, ASIC has strengthened its application of Section 311 of the Corporations Act 2001. Late or missed lodgements may now be treated as reportable breaches, placing increased pressure on both directors and auditors to act early and ensure compliance.
Why ASIC Updated RG 34
ASIC reviewed RG 34 because too many Companies are missing lodgement deadlines. This applies to both private and public entities.
At the same time, new sustainability standards (AASB S1 and S2) increase the volume and complexity of reporting. ASIC wants clear accountability.
What Changed in 2025
1. Non‑lodgement is now “significant”
Auditors must report a client to ASIC if you fail to lodge:
- A financial or sustainability report by the due date (listed or disclosing entities), or
- A report within 28 days after the due date (all other entities).
If you miss these deadlines, auditors can no longer treat the issue as immaterial.
2. Repeated failures increase risk
If you miss lodgements across multiple years, ASIC views this as high risk. Auditors must escalate these cases faster.
ASIC is pushing for stronger governance and compliance. Repeated delays signal deeper problems.
Who Must Lodge—and Who Needs an Audit
Under Part 2M of the Corporations Act 2001, you must prepare and lodge annual financial reports if you fall into any of the categories below:
- Disclosing entities (for example, ASX‑listed entities and registered MIS)
- Public Companies
- Large proprietary Companies
- Registered schemes and superannuation entities
- Small proprietary Companies (if ASIC, shareholders, or foreign control requires it)
- Small Companies limited by guarantee (if ASIC or members require it)
A proprietary Company is large if it meets at least two of these thresholds:
- $50 million or more in consolidated revenue
- $25 million or more in consolidated assets
- 100 or more employees
Most of these entities need an audit. Some Companies Limited by Guarantee may only need a review. Audit relief is rare and requires ASIC approval.
Why This Matters for Directors and Management
The updated RG 34 increases accountability.
If you don’t lodge on time:
- ASIC may treat it as a reportable breach
- Regulators and investors may see it as weak governance
- You face reputational and financial risk
The margin for error is smaller now.
For auditors, this means more scrutiny, tighter documentation, and faster escalation when issues arise.
What You Should Do Now
1. Review your lodgement history – Check for past delays or missed lodgements. Fix the root cause and track future deadlines clearly.
2. Tighten reporting governance – Make roles clear. Document responsibilities. Ensure management and the Board review reporting progress regularly.
3. Lock in your year‑end timetable – Start early. Prepare draft financials ahead of audit. Make sure records and approvals are ready before audit work begins.
4. Talk to your auditors early – Give auditors access to records on time. Raise issues as soon as they appear. Delays only increase reporting risk.
5. Track compliance properly – Use a compliance calendar or automated reminders. Don’t rely on memory or informal follow‑ups.
If you’re looking to reduce lodgement risk and strengthen governance, Accru can assist you in meeting your reporting obligations without last-minute pressure. Partner with us to prepare and review financial statements, manage year-end timetables, and ensure compliance with ASIC and AASB requirements.
