
Follow us on LinkedIn for the latest industry updates and trending news.
The Australian Securities and Investments Commission (ASIC) has fined Optix Australasia Pty Ltd $187,800 for failing to lodge financial reports for the fiscal year ending June 30, 2023, as required under the Corporations Act 2001 (Cth). The fine was officially imposed on November 8, 2024, reinforcing ASIC’s strict stance on financial compliance.
Why was Optix Fined?
Optix, a South African-owned subsidiary of KAP Limited, has admitted to failing compliance with Australian financial reporting rules for FY2023 and early years.
Alleged contravention:
Failure to lodge annual financial reports and director reports with ASIC for the financial year ending 30 June 2023, as required under Section 319(1) of the Corporations Act 2001 (Cth).
Optix, as a small proprietary company controlled by a foreign entity, was required to lodge its reports by 31 October 2023 but failed to do so.
No exemption applications (Forms 382 or 384) were lodged, nor was relief sought under Section 340 of the Act.
What are the key requirements?
According to Section 292(2)(b) of the Corporations Act 2001 (Cth) and ASIC's Regulatory Guide 58, small proprietary companies in Australia are required to prepare and lodge financial reports under the following conditions:
Control Requirement: The company was controlled by a foreign company for the whole or part of the financial year.
Non-Consolidated Reporting: The company was not included in the consolidated financial statements lodged with ASIC by a registered foreign company, a managed investment scheme, or a disclosing entity.
Could Optix have avoided this?
Small companies controlled by foreign parents can apply for exemptions if:
Their financials are included in the parent’s ASIC-lodged reports.
They meet specific ASIC criteria for relief.
But Optix didn't qualify - and now faces a hefty penalty.
How to avoid this mistake?
Appoint a dedicated compliance team to ensure timely submission of financial reports.
Conduct internal audits to identify and rectify potential compliance risks.
Review ASIC’s exemption policies and apply where applicable
Engage professional accounting firms or legal advisors to ensure full compliance with evolving regulatory requirements.
The Bottom Line
Foreign-controlled companies in Australia: Don’t cut corners on financial reporting! ASIC is cracking down, and penalties are steep. Strengthen compliance frameworks, lodge reports on time, and seek professional advice to dodge costly risks.