Three large proprietary companies associated with the Mecca group have paid $594,000 in infringement notices after allegedly failing to lodge audited financial reports on time.
Mecca Brands Pty Ltd, Mecca Brands NZ Pty Ltd and RTCH Pty Ltd each paid an infringement notice of $198,000, after allegedly failing to lodge audited financial reports for the year ended 28 December 2024 within the statutory timeframe.
The reports were due by 28 April 2025.
ASIC began inquiries with Mecca in July 2025, and the companies lodged their financial statements shortly after being contacted by ASIC.
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.
Mecca is an Australian beauty retailer. There are over 110 Mecca stores across Australia and New Zealand, in addition to an online store.
The specific reasons for ASIC's concerns are set out in the infringement notice on the Infringement Notices Register.
ASIC's focus on non-lodgement of financial reports
Financial reporting misconduct, including failure to lodge financial reports, is an enforcement priority for ASIC in 2026.
ASIC's focus on non-lodgement of financial reports extends beyond individual matters and includes targeted, data-driven surveillance and enforcement action.
In 2025, ASIC engaged with 217 companies as part of a surveillance into non-lodgement of financial reports. That work identified 151 companies that were non-compliant with their financial reporting obligations for one or more financial years. As a result of this work, twelve large proprietary companies received infringement notices for allegedly failing to lodge their FY24 audited financial reports on time (25-298MR).
ASIC is continuing this work in 2026 through an expanded surveillance program focused on non-lodgement and persistent late lodgement of financial reports. The current program uses a data-driven, risk-based approach and extends beyond large proprietary companies to include other companies with financial reporting obligations.
ASIC remains focused on improving compliance with financial reporting obligations and taking action where companies fail to meet those obligations.
ASIC Commissioner Kate O'Rourke said, '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 reminds the 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 in a timely manner.
'We also remind auditors of these entities to notify ASIC if they are aware or suspect that a company is not complying with its lodgement obligations.
'In line with our 2026 enforcement priority and our wider work, ASIC remains focused on improving compliance by companies and other entities with financial reporting obligations', Ms O'Rourke said.
Background
Large proprietary companies must prepare and lodge a financial report and a director's report within four months of the end of the financial year unless ASIC has granted relief.
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.
