CS 61 Proposed remake of ASIC Corporations (Wholly-owned Companies) Instrument 2016/785

ASIC has consulted on a proposal to remake ASIC Corporations (Wholly-owned Companies) Instrument 2016/785, which provides financial reporting relief to wholly owned companies that are party to a deed of cross guarantee and whose holding entity lodges a consolidated financial report. The existing instrument is due to sunset on 1 October 2026. ASIC's consultation, released on 3 August 2026 with submissions closing on 28 August 2026, proposed extending the relief for a further five years through a new instrument, ASIC Corporations (Wholly-owned Companies) Instrument 2026/XX, while the government separately progresses broader law reform for simplified group reporting relief announced in the 2026 to 2027 Budget.

ASIC proposed to preserve the core policy settings of the existing relief and the associated Pro Forma 24 Deed of Cross Guarantee, with savings provisions to protect deeds entered into under the earlier instrument. The proposed changes include amending the definition of closely held subsidiary to reflect that such subsidiaries must be party to the deed of cross guarantee, along with other technical and drafting updates. The relief under the current instrument continues to apply for financial years ending before 1 January 2027, with the new instrument intended to apply from that date onward.

Professional bodies that made submissions, including Chartered Accountants Australia and New Zealand and CPA Australia, broadly supported the proposed remake as a pragmatic measure providing continuity ahead of the broader reform project. The consultation is relevant to corporate groups that currently rely on deed of cross guarantee arrangements to avoid preparing separate audited financial reports for wholly owned subsidiaries.