A registered foreign company (branch) must lodge its balance sheet, profit and loss and cash flow statement with ASIC on Form 405 at least once every calendar year, no more than 15 months apart ($1,583 fee from 1 July 2026). An Australian subsidiary that is small but foreign-controlled must lodge financial reports unless it qualifies for relief, now in ASIC Instrument 2026/468. Large proprietary companies lodge audited reports within 4 months of year-end.
Financial reporting to ASIC is one of the obligations foreign groups most often miss, because it depends on how they operate in Australia. A branch lodges the foreign company's own accounts. An Australian subsidiary may or may not have to lodge, depending on its size and the size of the group. This guide sets out both, including ASIC's new consolidated relief instrument, which took effect in September 2026.
Registered foreign companies (branches)
Under s601CK of the Corporations Act, a registered foreign company must lodge with ASIC a balance sheet, profit and loss statement and cash flow statement, including the notes, at least once in every calendar year and at intervals of no more than 15 months. The statements must be accompanied by Form 405.
- Which accounts: generally those the company prepares under the law of its home country. If the home country does not require accounts, or ASIC directs, they must be prepared under Australian requirements (Chapter 2M).
- Audit: required only if the home country requires it or ASIC directs.
- Fees: $1,583 for Form 405 from 1 July 2026. The annual return (Form 406) is also $1,583. Late fees are $102 up to a month late and $428 after that, and both forms can attract two late fees.
- Lodging: Form 405 cannot be lodged online; it goes to ASIC by email or post.
New Zealand companies do not lodge Form 405 separately if their statements have been given to the NZ Companies Office; see NZ companies in Australia.
Relief for small foreign companies
From calendar years starting 1 January 2026, ASIC Corporations (Annual and Half-year Reporting) Instrument 2026/468 (s36) relieves a registered foreign company from the s601CK accounts requirement if it:
- is not required by its home law to prepare a balance sheet, profit and loss statement or cash flow statement;
- has restrictions equivalent to an Australian proprietary company;
- is not a disclosing entity, borrower or guarantor;
- is small (meets at least 2 of the 3 small proprietary company tests); and
- is not part of a large group, or was consolidated for the whole year into accounts lodged with ASIC by a controlling entity.
A company using the relief still lodges the annual return (Form 406). A "large group" meets 2 of: consolidated revenue of $50 million or more, gross assets of $25 million or more, or 100 or more employees.
Australian subsidiaries of foreign companies
An Australian Pty Ltd is either large or small. It is large if, with the entities it controls, it meets 2 of 3 tests: consolidated revenue of $50 million or more, consolidated gross assets of $25 million or more, or 100 or more employees at year-end.
| Subsidiary | Reporting |
|---|---|
| Large proprietary company | Prepare, audit and lodge an annual financial report (Form 388) within 4 months of year-end |
| Small proprietary company controlled by a foreign company | Must prepare and lodge a financial report, unless one of the reliefs below applies |
| Small proprietary company not foreign-controlled | Generally no ASIC financial report, unless shareholders or ASIC request one |
Relief for small foreign-controlled subsidiaries
A small foreign-controlled subsidiary does not have to lodge if either:
- its registered foreign parent lodges consolidated accounts with ASIC that include it; or
- it relies on s35 of Instrument 2026/468 (which replaced the long-used ASIC Corporations Instrument 2017/204). The conditions include: the company is not part of a large foreign-controlled group, the directors resolve to rely on the relief (no earlier than 3 months before the financial year starts), and it lodges Form 384 in the first year of reliance. Form 394 is lodged if it stops relying on the relief.
Companies already relying on 2017/204 are treated as relying on the new s35. Shareholders holding 5% or more can still require a report.
Aligning the financial year with the parent
A subsidiary can change its financial year to match a foreign parent (s323D). ASIC does not need to approve a change made to synchronise with a foreign parent, but it must be told, and a transitional year can run up to 18 months. For tax, the ATO separately allows a substituted accounting period on application, so the company's tax year can also match the group.
Common mistakes
- Assuming a small subsidiary never lodges accounts: foreign-controlled small companies must, unless relief applies.
- Relying on relief without the directors' resolution or Form 384.
- A branch forgetting that Form 405 is due every calendar year, even when the Australian operation is small.
- Letting the group grow past the large group tests without reviewing the relief.
We prepare and lodge Form 405, Form 406, Form 384 and Form 388 for foreign-owned clients as part of our ASIC compliance and tax and accounting services.
Frequently asked questions
Does a registered foreign company have to lodge accounts with ASIC?
Yes. Under s601CK it must lodge a balance sheet, profit and loss statement and cash flow statement with Form 405 at least once every calendar year, no more than 15 months apart, unless it qualifies for relief under ASIC Instrument 2026/468.
What is the ASIC Form 405 fee in 2026?
$1,583 from 1 July 2026, the same as the Form 406 annual return. Late fees are $102 up to one month late and $428 after that.
Does a small Australian subsidiary of a foreign company need to lodge financial reports?
Yes, a small proprietary company controlled by a foreign company must lodge unless its registered foreign parent lodges consolidated accounts including it, or it relies on the relief in s35 of Instrument 2026/468, which replaced Instrument 2017/204.
Can an Australian subsidiary use the same year-end as its foreign parent?
Yes. Directors can change the financial year to synchronise with a foreign parent without ASIC approval, but must notify ASIC. For tax, the ATO can approve a substituted accounting period.
This content is general information only and is not legal, financial or tax advice. Laws and regulations change often. For advice on your circumstances, speak to a qualified adviser.