Audit Lowe Down – Do You Need an Audit? Practical Guidance for Australian Businesses

Lowe Lippmann Chartered Accountants

Do You Need an Audit? Practical Guidance for Australian Businesses


Navigating whether your business needs an audit can be tricky, but it is crucial to ensure compliance.


Determining whether your business needs an audit in Australia depends on a few key factors, including business size, structure, and industry.


For large proprietary companies, audits are mandatory if they meet at least two of the following thresholds: annual revenue of $50 million or more, assets of $25 million or more, or 100 or more employees. Public companies and some not-for-profits are also required to undergo audits to comply with regulatory requirements.


But what if your business is small or medium-sized? Even if an audit is not legally required, you might still need one. For example, your bank might request audited financial statements as part of loan conditions, or suppliers or governments may want assurance that your financials are accurate and reliable. Additionally, certain industries, such as those regulated by specific state or federal laws, may have audit requirements regardless of entity size.


Even if you have no requirement for an audit, many entities choose to have their financial statements audited as part of good governance since an audit isn’t just a compliance exercise to tick a box—an audit can also provide valuable insights into your business operations and financial health as well as improving credibility with stakeholders.



If you are uncertain about whether an audit is necessary or could benefit your business, consulting with a professional can clarify your obligations and help you make informed decisions about the potential value of an audit.


Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.

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Practice Update – August 2026

August 4, 2026
Government to permanently extend $20,000 instant asset write-off The Government has recently introduced legislation that would make the $20,000 instant asset write-off permanent for small businesses (as announced in the 2026 Federal Budget). If enacted, the changes would: permanently set the instant asset write-off threshold at $20,000 (instead of $1,000) for eligible depreciating assets first used, or installed ready for use, for a taxable purpose from 1 July 2026; and permanently set the general small business pool threshold at $20,000 from 1 July 2026. The changes would also further suspend the 'lock-out rule' until 30 June 2027. This rule otherwise prevents a business that has chosen not to use the simplified depreciation rules from re-entering the regime for five years.

Tax Alert - High Court decision and ATO statement on Bendel’s Case

July 7, 2026
High Court decision and ATO statement on Bendel’s Case The High Court recently handed down its decision in Bendel’s Case, confirming that an unpaid present entitlement (or UPE) between a discretionary trust and a beneficiary company does not fall within the extended definition of a “loan” for Division 7A purposes. The Australian Taxation Office released a Decision Impact Statement in response to the High Court findings, concluding the High Court's reasoning makes it clear that where a beneficiary company is entitled to a share of trust income that remains unpaid (a UPE) and the company takes no positive actions to call for payment of the entitlement, this will not fall within the expanded definition of a "loan" for Division 7A purposes. This is in contradiction to the ATO’s historical position that treated UPEs as "loans".

Practice Update – July 2026

July 5, 2026
Government's tax reform package The Government has recently legislated several of the tax reform measures announced in the 2026 Federal Budget (and in later media releases). These include, among other things: Replacing the CGT discount with cost base indexation and a 30% minimum tax on gains accruing from 1 July 2027 (including gains on pre-CGT assets); Increasing the small business turnover threshold for the 50% active asset reduction from $2 million to $10 million; Limiting negative gearing for residential property to new residential dwellings from 1 July 2027 (subject to transitional rules); and Introducing the Working Australians Tax Offset from 1 July 2027, and the $1,000 instant tax deduction for work-related expenses from 1 July 2026. After a round of consultation, the Government has also announced further proposed measures, broadly including (among others): A new targeted CGT discount for investors in innovative start-ups; Barring SMSFs from utilising future limited recourse borrowing arrangements ( LRBAs ) to acquire residential property; and  Exempting income of discretionary testamentary trusts from the minimum tax proposed for trusts. We recently released a Tax Alert considering the legislation restricting SMSFFs using residential property LRBAs – to read click here . For full details of each of the 2026 Federal Budget announcements, please see our Federal Budget Tax Alert – to read click here .
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