CA ANZ has lodged a submission with ASIC on its proposal to remake the ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 for a further five years.

Our submission supports the continuation of the relief available to wholly-owned companies that are party to a deed of cross-guarantee. Relief remains important because it reduces duplicate financial reporting and audit requirements within wholly-owned groups where consolidated financial statements are prepared and lodged, while maintaining appropriate creditor protections. We also support updating legislative references, modernising administrative requirements and removing duplication of matters already addressed in Australian Accounting Standards.

We also note the broader reform context in our submission. The Australian Government has indicated its intention to replace the current deed of cross-guarantee arrangements with a simplified statutory framework for group reporting relief. While consultation on those reforms is yet to occur, we support continued work by ASIC and Treasury to develop a simpler framework that preserves the benefits of the current relief and reduces unnecessary legal and administrative complexity.