ASIC Annual Review Fee: What Happens If You Don’t Pay (And Other Business Registrations You Can’t Miss)
Most business owners know the ASIC annual review fee exists. A lot of them treat it like a minor admin task â something to deal with when the letter arrives, or maybe when they get around to it. What very few of them know is what actually happens when they don’t pay it, and the answer is far more serious than a late fee. We’re talking about your company ceasing to exist as a legal entity. Contracts becoming void. Your assets vesting in ASIC. Directors personally exposed.
But the ASIC annual review fee is just one of several compliance obligations that Australian business owners quietly let slip â each with its own set of consequences that range from costly to catastrophic. Business name renewals, ABN maintenance, GST registration, BAS lodgement, TPAR, and Single Touch Payroll all carry real penalties and real legal risk. This article covers all of them: what they are, what it costs to ignore them, and what you need to do to stay on top of them.
One of the ways Pinnacle adds value is by tracking these deadlines for our clients. You won’t receive an unexpected ASIC deregistration notice or a letter about a cancelled ABN while we’re your advisors â because we’re across these obligations before they become a problem. This is proactive advisory in practice. If you’re not currently working with an advisor who tracks this for you, read this carefully â and then get in touch.
Section 1: ASIC Annual Review Fee â The Obligation Every Company Has
Every registered company in Australia receives an annual statement from ASIC, usually shortly after the anniversary of its registration. That anniversary date is called the review date. Along with the annual statement comes the obligation to pay the ASIC annual review fee.
How Much Is the ASIC Annual Review Fee?
The current ASIC annual review fee (as at 2026) is:
| Company Type | Annual Review Fee |
|---|---|
| Small proprietary company | $342 |
| Public company | $1,591 |
| Special purpose company (proprietary) | $70 |
| Special purpose company (public) | $65 |
Source: ASIC â Company annual review
The fee is due within 2 months of the review date. The due date is clearly stated on the annual statement ASIC sends you.
What If You Pay Late?
Late payment attracts an additional fee â on top of the original review fee:
- $102 if payment is up to 1 month late
- $428 if payment is more than 1 month late
So a $342 annual review fee that is missed by six weeks becomes a $770 bill. Miss it by longer and ASIC will escalate.
What Happens If the Fee Is Never Paid?
ASIC will issue late fee notices, then a final letter of non-compliance to each director’s residential address. If fees remain unpaid, ASIC applies to deregister the company. This is where the real damage occurs.
Consequences of company deregistration:
- The company legally ceases to exist
- All company contracts become void and unenforceable
- Company assets vest in ASIC â not the shareholders
- Directors lose the protection of limited liability
- The company cannot trade, enter contracts, sue, or be sued
- Reinstating a deregistered company is significantly more expensive and time-consuming than paying the original fee
The $342 annual review fee suddenly looks very different when you weigh it against those consequences.
Practical tip: Set a calendar reminder on your company’s registration anniversary each year. Better yet, work with an advisor through Pinnacle’s Virtual CFO service who tracks this for you â it is one of the first things we add to every client’s compliance calendar.
Section 2: Business Name Registration â The Brand Theft Risk Nobody Talks About
If you trade under a name that is different from your company’s registered legal name, you must register that business name with ASIC. Business name registration is separate from company registration â it is the legal protection for the name your customers actually know you by.
Business Name Renewal Fees (2026)
Business name registrations must be renewed to remain active. The current fees are:
| Renewal Period | Fee |
|---|---|
| 1 year | $47 |
| 3 years | $108 |
Source: ASIC â Register a business name
ASIC will send a renewal notice at least 30 days before the registration expires, usually by email. But if your contact details are out of date, that notice will never reach you.
What Happens If You Don’t Renew?
If your business name is not renewed, ASIC may cancel the registration. Once cancelled, that name becomes available for anyone to register â including your competitors.
- A competitor or opportunist can register your trading name
- Brand confusion follows â customers may be directed to someone else
- Legal action to recover a business name is expensive and uncertain
- You may ultimately need to rebrand entirely
$47 per year. That is the cost of protecting the trading name your business has spent years building. The cost of losing it and fighting to get it back is orders of magnitude higher.
Practical advice: Register for 3 years if you plan to continue operating under that name â $108 for three years of protection is a straightforward decision. Add the renewal date to your compliance calendar, and set a reminder 60 days out. Note: if your company operates solely under its ACN or its registered company name, a separate business name registration may not be required â but if your trading name differs from your legal name at all, registration is mandatory.
Section 3: ABN Maintenance â The 47% Withholding Trap
Your Australian Business Number (ABN) is not simply a tax identifier â it is a signal to every customer and supplier you deal with that your business is legitimate and registered. When your ABN is cancelled or inactive, that signal disappears, and the consequences are immediate.
Why the ATO Cancels ABNs
The ATO can cancel your ABN if:
- Your business appears to be no longer active
- Tax returns or activity statements have not been lodged
- Your registered contact details are outdated or incorrect
- The ABN no longer reflects your actual business activities
What Happens When an ABN Is Cancelled
Any customer or supplier who looks up your business on the Australian Business Register (ABR) will see your ABN as cancelled or inactive. At that point, they are legally required to withhold 47% of any payments made to you â the top marginal tax rate plus Medicare levy â regardless of your GST registration status.
That is not a choice they make. It is a legal obligation imposed on them. The practical effect is immediate:
- Cash flow disruption from the moment a client notices the cancelled ABN
- Awkward explanations to suppliers and customers
- The ATO holds the withheld amount, creating a refund process rather than direct payment
- An application to the ATO is required to reinstate the ABN
How to keep your ABN active: Lodge your tax returns on time, keep your registered contact details current on the ABR, and ensure your ABN correctly reflects your current business activities. If your business structure or activities change â for example, you add a new service line â update your ABR registration accordingly.
Is Your Compliance Calendar Up to Date?
Managing compliance deadlines is one of the first things we do with every new Pinnacle client. Book a Consultation to review what’s on your compliance calendar.
Section 4: GST Registration â When Cancellation Creates Liability
GST registration is mandatory once your annual turnover reaches $75,000 (or $150,000 for non-profits). But registration is not a one-time event â it requires ongoing maintenance, and the ATO can cancel it.
When the ATO Cancels GST Registration
The ATO may cancel your GST registration if:
- You persistently fail to lodge your Business Activity Statement (BAS)
- Your turnover falls below the $75,000 threshold and you notify the ATO to cancel
- The ATO determines the business is no longer operating
Consequences of GST Cancellation
- You cannot legally charge GST on your invoices
- You cannot claim input tax credits on your business purchases
- Clients who check the ABR may see you are not GST-registered, which raises questions about your business status
- If your turnover is above the threshold and GST is cancelled, you remain legally liable â but cannot collect GST from customers to remit it. This creates a personal liability.
BAS lodgement â quarterly (or monthly, if you elect that frequency) â is a legal obligation. Missed BAS creates Failure to Lodge penalties and may trigger GST cancellation. Pinnacle’s BAS Agent Melbourne service ensures your activity statements are prepared and lodged correctly, every quarter.
Section 5: Tax Return and BAS Lodgement â The Penalties That Compound
Late lodgement of tax returns and activity statements attracts the ATO’s Failure to Lodge (FTL) on time penalty. As of 1 July 2026, the penalty unit increased to $364.
The FTL penalty is calculated at one penalty unit ($364) for every 28 days (or part thereof) the document is overdue, up to a maximum of 5 penalty units.
| Entity Type | FTL Penalty Per 28 Days | Maximum FTL Penalty (5 units) |
|---|---|---|
| Individuals and small entities | $364 | $1,820 |
| Medium withholders (Ã2) | $728 | $3,640 |
| Large withholders (Ã5) | $1,820 | $9,100 |
Source: ATO â Failure to lodge on time penalty
Company tax returns are generally due 31 October for self-preparers. Business owners who lodge through a registered tax agent receive an extended lodgement program â one of the practical benefits of working with Pinnacle’s tax planning and advisory team.
What Persistent Non-Lodgement Leads To
FTL penalties are the starting point, not the end. Persistent non-lodgement escalates:
- The ATO can issue default assessments â it estimates your tax liability, often unfavourably, and that becomes the debt you owe until proven otherwise
- Director Penalty Notices (DPNs): directors become personally liable for unpaid PAYG withholding and superannuation guarantee charge if these obligations are not met
- The ATO can commence legal recovery action, including court proceedings and garnishee orders
- Unpaid tax debts can be referred to credit reporting agencies, damaging your business credit rating
- As already noted: persistent non-lodgement can lead to ABN cancellation
If you are behind on lodgements, the right move is to get in front of the ATO, not to wait. Our team has helped many clients navigate voluntary disclosure and ATO catch-up arrangements â the outcomes are consistently better when you engage proactively.
Section 6: TPAR â The Taxable Payments Annual Report
The Taxable Payments Annual Report (TPAR) is a legal reporting obligation for businesses that pay contractors in specific industries. If you engage contractors and operate in any of the following industries, TPAR almost certainly applies to you:
- Building and construction
- Cleaning services
- IT services
- Courier and road freight
- Security, investigation, or surveillance
- Government entities paying grants to individuals
TPAR is due 28 August each year. It reports the total payments made to each contractor during the year â ABN, name, and amounts paid. The ATO cross-references TPAR reports with contractor tax returns to identify unreported income.
If you fail to lodge TPAR, the FTL penalty applies. Your contractors may also face ATO scrutiny if their reported income does not match what you have reported in your TPAR. This is an obligation that catches a lot of business owners by surprise, particularly those in construction and cleaning.
Section 7: Single Touch Payroll â Mandatory for Every Employer
If you employ anyone â even one person â you are required to report payroll information to the ATO through Single Touch Payroll (STP)-enabled software. STP has been mandatory for all employers since 2019-20, and STP Phase 2 expanded the reporting requirements further to include disaggregated income types and additional tax information.
Every time you run payroll, an STP report must be submitted to the ATO electronically through your payroll software. Missing STP events constitutes a Failure to Lodge, with FTL penalties applying per event.
- Check that your payroll software is STP Phase 2 compliant
- Ensure your software is submitting reports each pay run â not just at the end of the year
- Finalise your STP report for each employee at year-end (the “finalisation declaration”) so their income statement is marked as “tax ready” in myGov
If you are unsure whether your current payroll setup is STP Phase 2 compliant, talk to us. This is exactly the kind of technical payroll and compliance question we handle for clients through our Virtual CFO and advisory engagements.
The Pinnacle Approach: Proactive Compliance, Not Reactive Damage Control
Every obligation covered in this article has a clear pattern: the cost of staying compliant is modest. The cost of failing to comply is exponentially higher â in fees, in legal exposure, in business disruption, and in time.
The businesses that avoid these problems are not the ones with perfect memories. They are the ones who work with advisors who manage compliance calendars as part of the engagement. At Pinnacle, that is what proactive advisory means in practice â tracking these obligations, flagging upcoming deadlines, and making sure nothing slips through the gaps.
Here is a quick reference of the key compliance deadlines covered in this article:
| Obligation | Due / Frequency | Key Risk If Missed |
|---|---|---|
| ASIC annual review fee | 2 months after review date | Company deregistration, loss of limited liability |
| Business name renewal | 1 or 3 years from registration | Name cancelled, available for competitors to register |
| BAS lodgement | Quarterly (or monthly) | FTL penalties, GST cancellation |
| Company tax return | 31 October (self-preparers) | FTL penalties up to $1,820, default assessments |
| TPAR | 28 August annually | FTL penalties, contractor ATO scrutiny |
| STP reporting | Each pay run | FTL penalties per event |
| ABN maintenance | Ongoing â keep details current | ABN cancellation, 47% withholding by clients |
If you are reading this and realising there are obligations on this list you have not stayed on top of, the right move is to deal with them now â not later. Book a Consultation and we will work through your compliance position with you.
Frequently Asked Questions
What is the ASIC annual review fee for a small company?
For a small proprietary company, the current ASIC annual review fee is $342. It is due within 2 months of the company’s review date (the anniversary of its registration). Late payment adds a further $102 (up to 1 month late) or $428 (more than 1 month late). Source: ASIC.
What happens if I don’t pay the ASIC annual review fee?
ASIC will issue notices, add late fees, and ultimately apply to deregister the company. Once deregistered, the company ceases to exist as a legal entity: contracts become void, assets vest in ASIC (not the shareholders), directors lose limited liability protection, and the company cannot trade or enter contracts. Reinstating a deregistered company is a complex, costly process that far exceeds the original fee.
Can someone register my business name if I don’t renew it?
Yes. If your business name registration lapses, ASIC can cancel it and the name becomes available for any other person or entity to register â including a competitor. Recovering a trading name once it has been registered by another party typically requires legal action, which is expensive, slow, and far from guaranteed. Register for 3 years ($108) if you intend to keep using the name.
Can the ATO cancel my ABN?
Yes. The ATO can cancel your ABN if the business appears to be no longer active, if you have not lodged returns, or if your contact details are out of date. A cancelled ABN triggers a legal obligation on your clients to withhold 47% of any payments they make to you. Getting your ABN reinstated requires an application to the ATO. Keep your ABR details current and lodge on time to avoid this.
What is the penalty for not lodging a tax return in Australia?
The ATO’s Failure to Lodge (FTL) penalty is $364 per 28-day period (or part thereof) the document is overdue, up to a maximum of 5 penalty units. For small entities, the maximum FTL penalty is $1,820. Medium withholders face double that, and large withholders face five times the base rate. Persistent non-lodgement can also result in ATO default assessments, Director Penalty Notices, credit reporting, and ABN cancellation. Source: ATO.
Frequently Asked Questions
What is the ASIC annual review fee?
The ASIC annual review fee is a yearly charge to keep a company registered. ASIC issues an annual statement on the company’s review date, and the fee must be paid to keep the company in good standing. Proprietary company fees are indexed each year, so check the current amount on the ASIC website.
When is the ASIC annual review fee due?
It is due within two months of the company’s annual review date, which is usually the anniversary of registration. Paying late attracts a late payment fee, and continued non-payment can eventually lead ASIC to deregister the company, so diarise the date each year.
Can I pay the ASIC fee for multiple years at once?
Yes. Companies can pay 10 years of annual review fees in advance at a discounted rate, which locks in the cost and removes the yearly admin. This can suit long-term holding companies or trustee companies you intend to keep for many years.
What happens if I do not pay ASIC fees?
ASIC charges escalating late fees and can ultimately deregister the company, meaning it ceases to exist and can no longer trade or hold assets. Directors should keep company details current and pay on time to avoid losing the company and its assets.
This article contains general advice only and does not take into account your specific circumstances. Please speak with a qualified accountant or tax adviser before making financial decisions.
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