Ever been hit with an unexpected fee from ASIC? Whether you’re a small business owner or a corporate giant, understanding ASIC’s late fees can save you a great deal of frustration and financial stress. Delve into our comprehensive guide to navigate ASIC late fees and avoid unnecessary penalties.
Stepping into the world of ASIC fees can be daunting, especially when you’re juggling other business responsibilities. Penalties for overdue submission of required documents or late fee payment are what make up ASIC late fees. ASIC adjusts these fees annually on the first of July, encompassing late lodgements and late payments.
This fee is incurred when necessary documents are belatedly submitted to ASIC, with the amount contingent on the delay’s length. If the document is lodged within one month after the due date, the penalty is $93, but if the lodgement is more than one month late, the fee soars to a hefty $387.
To sidestep these escalating fees, always submit documents such as completed forms, annual returns, and other lodge documents within the stipulated timeframe.
Also, be vigilant for the late payment fee; it’s charged when the annual review fees are not paid within the assigned period. Just like the late lodgement fee, the late payment fee is $93 if the payment is delayed up to one month, and $387 if the payment is delayed more than one month. Such fees can significantly impact a company’s share capital and financial standing, so it’s crucial to settle them promptly.
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Equipped with the knowledge of various types of ASIC late fees, it’s time to explore practical tactics to sidestep them. As the saying goes, prevention is better than cure.
A simple yet effective strategy to avoid late fees is to keep track of due dates. ASIC lodgements and payments are generally expected to be completed within 28 days of the annual statement issue date. Tools like the ASIC Calendar can be a lifesaver for monitoring these deadlines.
Remember, a delay can result in late fees, so ensure that your lodgements are not only timely but also meet the approval of ASIC. If you’re facing difficulties meeting the deadline, ASIC may grant an extension for specific balance dates upon approval before the original deadline.
Consistently updating your Australian company details is another effective preventive step. This not only facilitates efficient communication with ASIC but also helps avoid missing payment deadlines. It’s advisable to update your company details with ASIC within 28 days of any changes taking place. To do this, you’ll need to submit a ‘Changes to company details’ transaction online via ASIC online service.
Keep in mind, that irregularly updating company details can lead to penalties and inaccurate public records.
Despite our best efforts, sometimes late fees can slip through the cracks.
Let’s discuss the potential repercussions of these missed payments.
One of the most severe consequences of unpaid late fees is de-registration. ASIC may initiate the removal of a company from the register due to non-payment of its annual review fee, cessation of business operations, or outstanding fees and penalties. To avoid de-registration, it’s crucial to settle all fees promptly, including the annual review fee.
Note that once voluntary de-registration takes place under the Corporations Act, the public/private company forfeits its legal standing and cannot participate in any business activities, which can have serious legal consequences for the directors and shareholders of the company.
Beyond de-registration, unpaid late fees can lead to additional monetary penalties. ASIC has the authority to impose a range of penalties, such as late lodgement fees and late payment fees, which can escalate if the annual review fee remains unpaid. Non-payment of these fees can have a substantial negative impact on a company’s credit standing and may create obstacles in obtaining future financing.
Furthermore, ASIC enforces supplementary fines and penalties for overdue fees through judicial proceedings, potentially leading to even higher penalties.
Having considered the potential consequences of unpaid late fees, it’s time to shift focus and grasp the annual review process along with its correlated fees.
Every company attaches great importance to the annual review date. Typically, this date is the anniversary of the company’s date of registration or incorporation. During the annual review, ASIC examines various aspects such as:
If a company wishes to change its annual review date, it can submit a request to ASIC.
The annual review also incurs specific fees, which are set according to the type of company. If the payment is received more than 28 days after the company statement is issued, there will be a late review fee included in the charges.
The prevailing annual review fee for ASIC is $310 for a proprietary company and $63 for a special purpose company (proprietary). Timely payment is crucial to avoid additional charges like late payment or late review fees.
Transitioning from company fees, it’s time to investigate the charges related to registering and renewing a business name with ASIC.
Embarking on a new venture? It’s vital to be aware of the registration fees for a new business. As of 1 July 2023, the fee for registering a new business name with ASIC is $42 and $98 for three years. But remember, the registration fees can vary from one state to another in Australia.
So, whether you’re a budding entrepreneur or an established business owner looking to start a new venture, keeping these fees in mind can help you budget effectively.
Business name renewal also entails specific charges. For a one-year renewal, the fee is $37, and for a three-year renewal, the fee is $88, effective from 1 July 2023. Although these fees are fixed and don’t offer any discounts or waivers, planning for these costs can help you avoid any financial surprises.
Now, let’s examine how ASIC recoups its regulatory costs, a significant factor impacting the late fee structure.
ASIC mainly recuperates its regulatory costs from the industries it oversees by invoicing them annual levies. These levies consist of regulatory costs and fees-for-service imposed on entities within different industry sub-sectors. Due to the recent ASIC fees increased, the payment of these levies is now due within 30 business days after the invoice is issued.
So, whether you’re a small proprietary limited company or a larger entity, being aware of these levies can help you avoid late fees and stay on top of your finances.
Navigating ASIC’s late fees and understanding how they work can provide a significant advantage in managing your company’s finances. From understanding the different types of late fees and their implications, to strategies for avoiding these fees and understanding the consequences of unpaid fees, we’ve covered a lot of ground in this blog post. Remember, the key to avoiding late fees lies in staying organised, being aware of due dates, and keeping your company details up-to-date.
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The late payment fee for ASIC Company & Business Name Fees from 1 July 2021 to 30 June 2022 is $93 for lodgements or payments up to one month late, and $387 for those over one month late.
If ASIC fees are not paid on time, the company may be deregistered by ASIC. This could have serious consequences for the business and all associated stakeholders.
ASIC charges two main types of late fees – late lodgement fees for tardy submission of documents and late payment fees for delayed payment of fees – making it important to stay up to date with compliance requirements.
To avoid late fees, stay on top of due dates for payments and keep your company details up to date with ASIC.
The annual review process involves fees based on company type, plus a late fee if the review is completed more than 28 days after issue of the company statement.