Change a company financial year

Rules about financial years

The first financial year for a company, registered scheme or disclosing entity must start on the day it’s registered or incorporated. The first financial year may last between 12 months and 18 months. The directors can decide the length.

After that, all financial years must start at the end of the previous financial year and be 12 months long. There are only some reasons a company may have a financial year that is not 12 months long.

Exceptions to the 12-month rule

Your company can change a 12-month financial year for the following reasons.

• The directors need to change the financial year to accommodate week-based internal reporting. This change can be no more and no less than 7 days.
• In the previous 5 financial years, there has been no financial year of less than 12 months long, and the change is made in good faith in the best interests of the company.
• You need to synchronise the financial years of the consolidated entities. You can only do this once, within 12 months after the need of consolidation arises, and only if the accounting standards require the entity to prepare consolidated financial statements. The extended financial year cannot be longer than 18 months.
• A company wants to synchronise its financial year with a foreign parent company. You must meet the conditions in Regulatory Guide 58 (RG 58). The extended financial year cannot be longer than 18 months.

Regulatory Guide 58 Reporting by registered foreign companies and Australian companies with foreign shareholders (RG 58)

A company does not need to ask us for permission to change its financial year for any of these reasons, but it does need to tell us.

The company may also be able to change a 12-month financial year if having one would be an unreasonable burden. In this case, you will need to apply to us.

How to change a company financial year

The company must tell us:

• the start and end dates of the old financial year
• the start and end dates of the new financial year
• the exception under which your entity has changed, or is changing, its financial year.

You can tell us about a change to a company financial year by contacting us online.

You can also tell us in writing at:

Australian Securities and Investments Commission
PO Box 4000
GIPPSLAND MAIL CENTRE VIC 3841

Apply for change under the unreasonable burden exception

If you believe having a 12-month financial year would be an unreasonable burden, you will need to tell us why.

For guidance, use:

Regulatory Guide 43 Financial reports and audit relief (RG 43)

Regulatory Guide 51 Applications for relief (RG 51)

Then see the instructions about how to apply for relief.

Timing of a public company’s AGM

Changing a financial year may affect the timing of a public company’s annual general meeting (AGM). An AGM must be held within 18 months of the registration of a public company. Then AGMs must be held at least once each calendar year, no later than 5 months after the end of each financial year.

If your company cannot meet these timings, you must apply to ASIC for an extension of time to hold your AGM.

Form 2501 Application for extension of time to hold Annual General Meeting

You will need to pay a fee when you apply. The current fee is {230}.