Proposals to simplify the financial reporting framework for small to medium sized businesses (SMEs), and registered charities, was announced recently.

 The proposed reforms follow a review of the financial reporting framework which found it to be over costly and not meeting users' needs or expectations. Under the new regime, non-issuer companies which do not meet the definition of large companies (annual revenue of more than $30 million, or assets of more than $60 million) will be asked to prepare targeted reports for tax purposes, rather than financial statements under the Companies Act. The changes will reduce the number of companies required to prepare general purpose financial reporting from 460,000 to less than 10,000, and are expected to cut business compliance costs by $90 million annually. Commentators have, generally speaking, welcomed the simplified rules but have queried the high thresholds. The government expects to introduce a Financial Reporting Amendment Bill to the House next year.