Logistics group cops $600k fine for failing to lodge financial reports

ASIC has issued infringement notices totalling $594,000 to three companies within supply chain logistics operator Mainfreight Group for allegedly failing to lodge their financial reports for the financial year ended 31 March 2025 on time.

Mainfreight Distribution Pty Limited, Owens Group Australia Pty Limited, and Mainfreight Holdings Pty Ltd each paid an infringement notice of $198,000 for not lodging their financial reports by the 31 July 2025 deadline, the corporate regulator said.

In its infringement notices for the three companies under Mainfreight Group, ASIC said it believes, on reasonable grounds, that the companies have contravened section 319(1) of the Corporations Act (a provision subject to an infringement notice) because they were registered as Australian proprietary companies limited by shares.

ASIC said that for the financial year 1 April 2024 to 31 March 2025, Mainfreight Distribution, Mainfreight Holdings, and Owens Group met the definition of a large proprietary company. Furthermore, it said that under the Corporations Act, large proprietary companies are required to prepare annual financial reports and directors’ reports.

“Large proprietary companies required to prepare annual reports under Part 2M 3 of the Corporations Act are required to lodge the annual reports with ASIC under section 319(1) of the Corporations Act within four months from the financial year end,” ASIC said in its infringement notice.

According to ASIC, the three companies within Mainfreight Group were required and failed to lodge their annual reports with ASIC by 31 July 2025 for the financial year ending 31 March 2025.

The maximum criminal penalty that a court could impose for the alleged contravention is $396,000.

Payment of an infringement notice is not an admission of guilt or liability, and the companies are not regarded as having been convicted of the alleged offence, ASIC noted.

Infringement notice a warning for other companies

ASIC commissioner Kate O’Rourke said the infringement notices issued to the Mainfreight Group should send a signal to companies that are required to lodge financial reports for the year ended 30 June 2026.

“ASIC’s action sends a clear message to reporting entities that we are actively enforcing the financial reporting requirements and expect companies to comply,” O’Rourke said.

“We have issued infringement notices to companies across a range of sectors including retail, hospitality and now logistics. All of these companies play a significant role in our economy and should be complying with their financial reporting obligations.”

“We remind companies required to lodge financial reports that they must generally lodge within four months after the end of the financial year. Disclosing entities and registered schemes generally have three months.

“Reporting companies should act now to ensure their FY26 financial reports are prepared, audited and lodged with ASIC on time. We will take appropriate action to ensure reporting entities comply with their governance and disclosure obligations.”

O’Rourke said ASIC will continue its “targeted, data-driven” surveillance to identify and investigate companies that have lodged their financial reports late or failed to lodge them.

Companies have been told to check whether they are required to lodge financial reports, confirm their applicable lodgement deadline, and ensure audit and board approval processes are arranged early enough to meet that deadline.

ASIC’s focus on financial reporting

The infringement notices form a larger part of ASIC’s 2026 enforcement priority on financial reporting misconduct, including the failure to lodge financial reports.

ASIC has issued infringement notices totalling more than $5 million since beginning its broad surveillance focused on alleged late lodgement and non-lodgement of financial reports in August 2025.

These include infringement notices to Canva (which paid $792,000 in penalties for failing to lodge financial reports on time), fashion and beauty retailers trading under Zara, H&M, and Sephora brands (which paid $596,000), and three proprietary companies associated with beauty retailer Mecca Group (which paid $594,000).

In addition, ASIC has obtained court-imposed fines for failing to lodge financial reports and related governance obligations, including more than $1.1 million in fines against three public companies in a single day at the Downing Centre Local Court.

Large proprietary companies are required to prepare and lodge annual financial reports. As per ASIC, a proprietary company is classified as large if it meets at least two of the following criteria for a financial year:

• The consolidated revenue of the company and any entities it controls is $50 million or more.

• The consolidated gross assets of the company and any entities it controls is $25 million or more.

• The company and any entities it controls have 100 or more employees.

“In addition to large proprietary companies, other entities that are required to prepare and lodge financial reports include public companies, registered managed investment schemes, registrable superannuation entities, and small proprietary companies that are controlled by a foreign company,” ASIC said.