Three proprietary companies within Mecca have paid $594,000 in infringement notices for failing to lodge financial reports on time.

Mecca is an Australia-based beauty retailer with more than 110 stores across Australia and New Zealand, in addition to an online store. Mecca Brands Pty Ltd, Mecca Brands NZ Pty Ltd and RTCH Pty Ltd each paid $198,000 after allegedly failing to lodge audited financial reports for the financial year ended December 28, 2024, within the period required by law.

Reporting obligations

Under the law, large proprietary companies must prepare and lodge a financial report and a directors’ report within four months of the end of the financial year, unless granted relief by the Australian Securities and Investments Commission (Asic). The reports were therefore due by April 28 last year.

“Large proprietary companies are legally obliged to provide financial reports to ensure that creditors and others dealing with these businesses can make informed decisions,” Asic commissioner Kate O’Rourke said.

“Asic reminds directors of large proprietary companies and other entities with financial reporting obligations that they need to proactively review their reporting obligations and ensure financial reports are lodged on time.”

Asic reviewed Mecca in July last year. The companies lodged the reports after being contacted. Payment of an administrative penalty does not constitute an admission of liability, and the companies are not considered convicted of the alleged conduct.

Asic enforcement focus

Failure to lodge financial reports remains an enforcement priority, said the regulator said, which is continuing a surveillance program focused on the late and non-lodgement of financial reports.

The program applies a data-driven, risk-based approach and extends beyond large, proprietary companies to other entities with reporting obligations.

The regulator also requires auditors to notify it when they identify or suspect non-compliance. It said that action will be taken against entities that fail to meet their obligations.

“In line with our 2026 enforcement priority, Asic remains focused on improving compliance by companies and other entities with financial reporting obligations,” O’Rourke said.

Last year, Asic engaged with 217 companies for failing to lodge financial reports on time. It identified 151 companies that did not comply with reporting obligations for one or more financial years.

As a result, 12 large proprietary companies received infringement notices for allegedly failing to lodge audited financial reports for the 2024 financial year on time.