The Australian operators of Zara, H&M and Sephora have paid a combined $596,000 in infringement notices after allegedly failing to lodge financial reports on time.
The Australian Securities and Investments Commission said the notices were issued to three companies operating major fashion and beauty retail businesses in Australia.
Inditex Australia Pty Ltd, which operates the Zara fashion brand in Australia, paid an infringement notice of $198,000 for allegedly failing to lodge its report for the financial year ending 31 January 2025.
H&M Hennes & Mauritz Pty Ltd, which operates under the H&M fashion brand, paid an infringement notice of $198,000 for allegedly failing to lodge its report for the financial year ending 30 November 2025.
Sephora Australia Pty Ltd, a beauty and personal care retailer, also paid an infringement notice of $198,000 for allegedly failing to lodge its report for the financial year ending 31 December 2024.
ASIC said the three companies have now lodged all outstanding financial reports.
Payment of an infringement notice is not an admission of guilt or liability. The companies are not regarded as having been convicted of the alleged offence.
ASIC focuses on financial reporting
Kate O’Rourke, ASIC Commissioner, said the infringement notices reinforced the regulator’s focus on late lodgement and non-lodgement of financial reports by large proprietary companies.
“Since announcing a broad surveillance focused on late lodgement and non-lodgement of financial reports in August 2025, ASIC has issued 24 infringement notices totalling over $4.5 million for alleged financial reporting breaches,” O’Rourke said.
“This, combined with court-imposed fines for failing to lodge financial reports and related governance obligations, should send a clear message to reporting entities that we are actively enforcing the financial reporting requirements and expect companies to comply.
“In line with our current enforcement priority, and through our targeted, data-driven surveillance, we continue to identify and investigate a number of companies that have lodged late or failed to lodge at all.
“ASIC will take appropriate action to ensure reporting entities are well aware of, and comply with, this important governance and disclosure obligation,” O’Rourke said.
Kate O’Rourke
What companies must report?
ASIC has listed financial reporting misconduct, including failing to lodge financial reports, as one of its 2026 enforcement priorities.
Large proprietary companies are required to prepare and lodge annual financial reports. A proprietary company is classified as large if it meets at least two of three thresholds.
Those thresholds are consolidated revenue of $50 million or more, consolidated gross assets of $25 million or more, or 100 or more employees.
Other entities required to prepare and lodge financial reports include public companies, registered managed investment schemes, registrable superannuation entities, and small proprietary companies controlled by a foreign company.
ASIC said it has also 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.