Designated Private Company

What is a designated private company?

A company is a designated private company if:

• the company satisfies at least two of the following three sub-conditions in relation to the financial year ending immediately before the assessment period:

• the consolidated gross operating revenue for the financial year for the company and its subsidiaries is less than $25 million,
• the value of the consolidated gross assets at the end of the financial year of the company and its subsidiaries is less then $12.5 million,
• the company and its subsidiaries have fewer than 50 employees at the end of the financial year; or

• the company is a new company and came into existence after the end of the last financial year, or
• the company is a declared private company, and
• the company is not an excluded company.

Once it has been determined that the company is a designated private company, then the issue of who controls the assets and income of the company and the percentage of control to be attributed to the individual(s) can be decided.    

Non-designated private companies

Non-designated private companies are assessed under the pre 1 January 2002 private company rules.