On Jul. 11, NZ CRG issued reporting exemption for Australian firms.
NZ CRG issued Companies act (overseas incorporated companies: Australian wholly-owned entities) exemption notice 2025, exempting directors of certain overseas companies incorporated in Australia from various provisions of the Companies act 1993.
Purpose
The notice applies to overseas companies incorporated in Australia, which are wholly-owned subsidiaries that have been granted relief under the ASIC corporations (wholly-owned companies) instrument 2016/785 (the ASIC instrument).
It allows such companies to provide the consolidated financial statements that they are required to prepare under financial reporting requirements in Australia.
The ASIC instrument provides that certain wholly-owned subsidiaries may be relieved from the requirement to prepare and lodge audited financial statements under Chapter 2M of the Corporations act 2001 (ASTCA), subject to meeting specified conditions.
Effect of Exemption
The exempt overseas company will prepare and register audited financial statements for the New Zealand business and the consolidated financial statements prepared for the group of which the company is a member (not stand-alone financial statements).
The consolidated financial statements will comply with generally accepted accounting principles (GAAP) in Australia, rather than GAAP in New Zealand.
The consolidated financial statements will be audited in accordance with auditing and assurance standards in force in Australia rather than those in New Zealand.
Effectiveness
This notice comes into force on Aug. 1, 2025 and expires at the close of Jul. 31, 2030.
