ASIC has cautioned business owners to be alert to a growing trend of third-party businesses targeting companies with annual company review letters appearing to be an official government bill from the regulator.
It has been exposed that business owners are being sent documents that seem to be mandatory annual company reviews. However, the letters, which include a “review date,” a “reference number,” and even a QR code to “pay now,” are actually marketing materials from a third party charging $449 to handle administrative tasks many business owners can easily do themselves for much less.
The letter encourages business owners to pay for an annual company review, which includes ensuring that company information is up to date and that the company remains financially viable and able to pay its debts.
While the text at the bottom of the document states the company is “third party,” “independent from ASIC,” and “this is not a bill,” the layout and wording are specifically targeted at stressed, off-guard entrepreneurs who don’t read the fine print.
The letter even warns that “additional late fees are required to reinstate” your company review if it isn’t performed on time, despite it being an opt-in service. Business owners do not need to pay the fee.
While the letter looks like a government one, the actual cost of an annual company review through ASIC is typically around $62-329.
ASIC has published a statement saying, “Some third-party businesses may offer to assist companies with their annual obligations, these providers may advertise on social media or contact companies with unsolicited correspondence that appears to be an invoice, offering to complete a company review,” an ASIC spokesperson said.
They stated that while third party agents can provide a service to complete a company’s annual review, ASIC aims to ensure these providers do not “misrepresent” themselves as ASIC. “It is important to carefully check correspondence from these providers for any fees being charged over and beyond the fees charged by ASIC,”.
In today’s current economy, these letters are the last thing struggling Aussie business owners need. It’s a relief not to have to deal with the bureaucracy of ASIC. However, please be careful and always speak to us if you are not sure.
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