Every Australian company director knows the feeling: that official notice from ASIC arrives, signalling that it’s time for your company’s annual review. This isn’t just another bill; it’s a critical compliance task. Completing the review, passing a solvency resolution, and paying the ASIC annual review fee on time are non-negotiable legal duties.
Getting it wrong can lead to steep late fees, default notices, and even the potential deregistration of your company. This practical guide will walk you through the entire process, providing a clear checklist to ensure you stay compliant and avoid costly penalties in 2025.
What Is the ASIC Annual Review Fee?
In simple terms, the ASIC annual review fee is the yearly charge that registered companies must pay to maintain their status on the Australian Securities and Investments Commission (ASIC) register. It’s a core part of your company’s ongoing legal obligations.
When the review package arrives, it contains two distinct parts:
- ASIC Annual Statement: This is a snapshot of your company’s details as held by ASIC. It includes your registered office, principal place of business, directors, secretaries, and shareholders. Your legal duty is to review this statement carefully and confirm all information is current and correct.
- Annual Review Fee Invoice: This is the bill for the annual fee. Paying it by the due date completes the review process.
You may hear the term “annual return,” but this is an outdated phrase. The correct modern terms are the ASIC annual statement and the annual review fee.
Who Pays the Fee?
Nearly every company registered in Australia must pay this fee, including proprietary, public, and special purpose companies. Certain organisations, like charities registered with the Australian Charities and Not-for-profits Commission (ACNC), may be eligible for concessions or exemptions. It’s crucial to verify your status and the current fee amounts on ASIC’s official fee schedule.
Heads up: The annual review fee does not have GST applied and is usually a tax-deductible business expense. Always confirm with your tax advisor.
Your Annual Review Timeline (What Happens Each Year)
The ASIC annual review process follows a strict and predictable timeline. Understanding these key dates is essential for avoiding penalties and ensuring your company remains compliant.
The cycle begins on your ASIC review date – typically the anniversary of your company’s registration—and concludes two months later with the payment deadline.
Your Annual Review Timeline at a Glance
This table breaks down the entire process, providing a clear roadmap for your annual compliance duties.
| Step | When | What you do | Notes |
|---|---|---|---|
| Review date | Usually the company’s registration anniversary | ASIC generates your annual statement & invoice | Confirm your registered office and Principal Place of Business (PPoB) are correct on ASIC’s records. |
| Update window | Within 28 days of your review date | Check the annual statement; update officer/addresses/share structure if needed. | Certain changes lodged within this 28-day window are fee-free. After that, separate ASIC form fees apply. |
| Payment & Resolution | By 2 months after your review date | Pay the annual review fee and pass a solvency resolution. | The solvency resolution must be kept with your company records; do not lodge it with ASIC unless requested. |
| After due date | If the fee is unpaid | ASIC late fees are applied on a sliding scale. | The penalties escalate the longer the payment is overdue, so prompt action is critical. |
How Much Is the ASIC Annual Review Fee in 2025?
The amount your company pays for its annual review depends on its structure. ASIC’s fees are indexed to the Consumer Price Index (CPI) and are adjusted annually on 1 July. It is essential to check the current rates each year.
The table below shows the common fees for the 2024–2025 financial year.
| Company Type | Annual Review Fee (2024–25) |
|---|---|
| Proprietary company | $329 |
| Public company | $1,530 |
| Special purpose company (e.g., SMSF trustee) | $67 |
| Fee-in-advance (optional, locks in current rate) | Varies (e.g., $3,290 for 10 years for a proprietary co.) |
Fees checked as of 1 July 2024. Source: ASIC Company fees.
Note on Concessions:
- ACNC-Registered Charities: Many charities registered with the ACNC are entitled to significant fee concessions or are exempt entirely. Review the specific guidelines on the ASIC website.
- Companies Limited by Guarantee: Those that are non-profit and have clauses in their constitution preventing distributions to members may also be eligible for reduced fees.
Avoid This: Never assume the fee is the same as last year. Always confirm the current amount using ASIC’s official fee schedule before making a payment to prevent underpayment and subsequent penalties.
How to Pay the ASIC Annual Review Fee
Once you receive your annual statement and invoice, paying the fee is a straightforward process. The invoice will be sent to your company’s registered office address or directly to your appointed ASIC registered agent.
Payment Methods
ASIC provides several convenient payment options:
- BPAY: Use the Biller Code and unique reference number found on your invoice. This is often the simplest method.
- Credit/Debit Card: Make a payment online via ASIC Connect. You will need your invoice number.
- Direct Debit: This option is typically used by registered agents managing multiple companies.
- Pay-in-advance: You can pay for up to 10 years in advance to lock in the current fee rate and avoid future CPI increases.
When paying, always use the correct invoice reference number to ensure the funds are allocated to your company’s account. After payment, keep a copy of the receipt with your corporate records.
Pro Tip: Engaging a registered agent, like Nanak Accountants, is the most reliable way to manage your annual review. An agent receives all ASIC correspondence, monitors due dates, processes payments on your behalf, and handles company detail updates, removing the risk of costly oversights.
Late Fees, Penalties & What Happens If You Don’t Pay
Ignoring your ASIC annual review fee has serious and escalating consequences. ASIC’s system is automated and applies penalties without delay.
The first penalty is a late payment fee, which increases significantly after the first month.
ASIC Late Payment Penalties (2024–25)
| Payment Delay | Late Fee Amount |
|---|---|
| Up to one month late | $93 |
| Over one month late | $387 |
Fees checked as of 1 July 2024. Source: ASIC Annual review and late fees.
If the debt remains unpaid, the consequences become more severe:
- Debt Collection: The outstanding amount may be passed to an external debt collection agency.
- Deregistration Notice: ASIC will issue a formal notice of its intention to deregister your company.
- Company Deregistration: If you fail to act, your company will be removed from the register, legally ceasing to exist. Its assets transfer to the Commonwealth, and directors may be held personally liable for trading while the company is defunct.
Applying for Fee Relief
In rare and exceptional circumstances (e.g., severe illness, natural disaster), you may apply to ASIC for a fee waiver or deferral. This requires submitting a formal application (Form 909) with substantial supporting evidence. However, waivers are not granted for simple oversight.
If your company has been deregistered, it is possible to have it reinstated, but this involves a separate, costly process through either ASIC or the courts.
Solvency Resolution – Don’t Skip It
Paying the fee is only one part of the annual review. Directors also have a legal obligation to pass a solvency resolution each year.
This is a formal declaration by the directors stating that they have reasonable grounds to believe the company can pay its debts as they become due. The resolution must be passed within two months of the company’s annual review date.
While you do not need to lodge the resolution with ASIC, you must keep a signed minute of it with your company’s records. Failure to do so is a breach of the Corporations Act 2001.
Example Wording:
“Resolved that in the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.”
If the company is not solvent, directors must not pass the resolution and should immediately seek professional advice from an accountant or insolvency practitioner about their options, which may include appointing an external administrator.
Common Mistakes That Trigger Extra Costs
Simple administrative oversights during the annual review process can lead to unnecessary fines and compliance headaches. Here are the most common mistakes to avoid:
- Using a PO Box: Your registered office and principal place of business must be a physical street address, not a PO Box.
- Incorrect Contact Details: If your registered office address or email is out of date, you may never receive the annual statement, leading to missed deadlines.
- No Occupier’s Consent: If using a third-party address (like your accountant’s office), you must have written consent from the occupier on file.
- Missing the 28-Day Update Window: Failing to update director, address, or share changes within 28 days of your review date will result in separate ASIC form fees.
- Using the Wrong Reference Number: Paying an invoice with an incorrect reference can cause the payment to be misallocated, triggering a late fee.
- Forgetting the Solvency Resolution: Not passing and recording this resolution is a statutory breach.
- Paying for a Dormant Company: If your company is inactive, it is often more cost-effective to formally deregister a company to stop fees using Form 6010 rather than paying the annual fee year after year.
Can You Reduce or Avoid the Fee?
While the annual review fee is mandatory for active companies, there are legitimate ways to manage or reduce the cost.
- Pay in Advance: Pre-paying the fee for up to 10 years locks in the current rate, shielding your company from future CPI increases. While there’s no discount, it provides budget certainty.
- Special Purpose Companies: If your company’s sole purpose is to act as the trustee of a self-managed super fund (SMSF), it qualifies for the much lower special purpose company fee.
- ACNC-Registered Charities: As mentioned, registered charities may receive significant fee relief or a full exemption from ASIC fees.
- Deregistering a Dormant Company: The most effective way to stop future fees for an inactive company is to deregister it. To be eligible, the company must have assets and liabilities under $1,000, have all members’ consent, and not be involved in any legal proceedings.
Changing your company structure (e.g., to a special purpose company) has strict eligibility criteria. Always seek professional advice before making such a change.
Frequently Asked Questions
What is the ASIC annual review fee and who must pay it?
The ASIC annual review fee is a yearly charge that most registered Australian companies must pay to maintain their registration. This includes proprietary companies, public companies, and special purpose companies. The fee ensures your company’s details on the public register are up-to-date and confirms its active status. It is a fundamental part of a company’s legal compliance obligations.
When is my ASIC annual review fee due?
Your ASIC annual review fee is due within two months of your company’s annual review date. This review date is almost always the anniversary of your company’s registration. For example, if your company was registered on 15 March, your annual review date is 15 March each year, and your payment deadline would be 15 May. Missing this deadline results in automatic late payment penalties.
How do I find my review date and annual statement?
ASIC sends your annual statement and invoice to your company’s registered office address shortly after your annual review date. You can also find your company details, including your review date, by searching for your company on the ASIC Registers. If you have an ASIC registered agent, they will receive the statement on your behalf and notify you of the due date.
What are ASIC late fees and when do they apply?
ASIC late fees are penalties automatically applied if you fail to pay your annual review fee by the due date. A penalty is charged if the payment is up to one month late, and a significantly higher penalty applies if it is more than one month late. These fees are indexed annually and are designed to enforce timely compliance.
Can I pay my ASIC annual review fee in advance?
Yes, ASIC allows companies to pay their annual review fee for up to 10 years in advance. While this doesn’t provide a discount, it locks in the current fee rate, protecting your business from future CPI-related increases. This option offers budget certainty and eliminates the risk of missing a future payment deadline.
Do charities or special purpose companies pay less?
Yes, concessions are available. Companies whose sole purpose is to be the trustee of a self-managed super fund (SMSF) qualify as a “special purpose company” and pay a much lower fee. Additionally, charities registered with the Australian Charities and Not-for-profits Commission (ACNC) may be eligible for fee exemptions or significant reductions, depending on their legal structure.
Is the ASIC annual review fee tax-deductible?
Yes, the ASIC annual review fee is generally considered a normal cost of doing business and is therefore tax-deductible. The fee does not include GST. You should always keep the payment receipt for your records and confirm the deduction with your tax advisor or accountant.
What is a solvency resolution and do I lodge it?
A solvency resolution is a formal declaration by the directors that they believe the company can pay its debts when they are due. It must be passed annually within two months of the review date. You do not need to lodge it with ASIC; however, you must keep a signed copy of the resolution in your company’s records. Failure to do so is a breach of the Corporations Act 2001.
How do I stop future fees for an inactive company?
To stop paying annual review fees for a company that is no longer trading, you must formally apply to ASIC to have it deregistered. This involves lodging a Form 6010. To be eligible, the company must meet certain criteria, such as having less than $1,000 in assets, no outstanding debts, and the consent of all members.
Can a registered agent handle the annual review for me?
Yes, absolutely. Appointing an ASIC registered agent is a highly effective way to manage your compliance. The agent becomes the official address for ASIC correspondence, meaning they receive the annual statement, monitor due dates, process payments, and manage updates to company details on your behalf. This service provides peace of mind and significantly reduces the risk of incurring penalties.
Conclusion
Staying on top of your annual review date, solvency resolution, and fee payment is fundamental to good corporate governance. It ensures your company remains compliant, avoids damaging penalties, and maintains its good standing on the public record. While the process is straightforward, the consequences of oversight can be severe.
Nanak Accountants can act as your dedicated ASIC registered agent. We monitor your deadlines, manage your annual statement, ensure the fee is paid on time, and keep your company details compliant, letting you focus on running your business. Book a complimentary 15-minute review with our team to discuss your company secretarial services needs today.
