What is the Annual Review?

Every year, ASIC will send your company an Annual Review Package – usually on the anniversary date of your initial company registration.  The key purpose of the annual review is to:

• ensure all your company details are up to date;
• pay your annual fee to keep the company registered; and
• confirm that your company is solvent.

What do I do when I receive the annual review package?

To keep your company compliant with ASIC, you need to make sure you do the following:-

1. Carefully check your company statement – including officeholder details, shareholder details and company addresses.  If you do need to make any changes this needs to be done within 28 days of the issue date of your annual review statement to avoid additional fees.  Changes are made online either by your registered agent or you can log into the ASIC officeholder portal. See FAQ – Login or Register for ASIC Online Services as an officeholder 
2. Pay the invoice amount – the ASIC invoice is included in the Annual Review Package documents and needs to be paid by the due date to avoid late fees.  The late fees are currently
   • $96 if paid one month late,
   • $401 if paid more than one month late.These late fees are applied on top of the original annual fee and ASIC does not waive late fees unless there are very exceptional circumstances.  See FAQ Can I waive late fees with ASIC for more details.
3. Make a solvency resolution – part of the annual review process includes assessing the financial health of your company.  If you believe the company to be solvent, the directors should sign a positive solvency resolution and keep a copy for your records.  In order to be considered solvent, you must review the financial records of the company and determine whether you believe the company has enough cash and/or will receive enough income to cover all it’s debts and expenses for at least the next 12 months.If you do not believe the company will continue to be solvent, you should seek advice from your registered agent or accountant as there are additional steps to take with ASIC in this situation. You will find a link below to a template you can use for the positive solvency resolution if you wish.  The solvency resolution needs to be passed by a majority of directors within two months of the review date.

TEMPLATE – Positive Solvency Resolution