Nearly one in three small business directors don’t know what happens when they breach their legal duties, according to a survey underpinning a new strategy from Australia’s corporate regulator.
ASIC surveyed 400 small business directors to shape its new small business strategy, announced on 30 July 2026. The numbers are stark. Nearly 49% of respondents said they lacked the time and resources to stay across corporate regulation, and the same proportion said there was too much regulation to keep in mind. Another 44% flagged the cost of professional advice as a barrier. One in five directors had never sought information about their duties at all.
ASIC chair Sarah Court said the regulator wanted to make compliance easier, not just punish people who got it wrong. “ASIC is committed to helping small businesses by providing clear, practical guidance, making it easier for them to interact with us, and taking targeted action against misconduct that harms small businesses,” she said. The strategy is built around four areas: education, simplification, engagement and collaboration, and protection and enforcement.
For tradies running a company, it’s not abstract. A sole-director Pty Ltd is common across construction, electrical, plumbing, and other trades, and director duties under the Corporations Act apply regardless of how many people are on the payroll. Record-keeping, financial reporting, and solvency obligations all sit with the director, whether they know it or not. ASIC has also been stepping up enforcement against companies that fail to lodge financial reports, so the stakes are real.
The regulator has released a free educational toolkit alongside the strategy, designed for directors who don’t have an accountant on speed dial. SmartCompany reported that the toolkit and an updated educational hub are available on the ASIC website now, covering what a director actually owes, when a company is trading while insolvent, and what records need to be kept.
For any tradie-director who’s been winging it on compliance, the free ASIC resources are worth checking before enforcement comes calling.
Frequently asked questions
What are a director’s basic legal duties under a Pty Ltd?
Under the Corporations Act, a director’s obligations include record-keeping, financial reporting, and ensuring the company doesn’t trade while insolvent. These duties apply regardless of how many staff the company has.
Where can I find ASIC’s free compliance resources for small business directors?
ASIC has published a free educational toolkit and updated educational hub on its website. The materials cover what a director owes, how to recognise insolvency, and what records must be kept.
Does running a sole-director Pty Ltd mean I have director duties?
Yes. Director duties under the Corporations Act apply to all company directors, including sole directors of small trade businesses, regardless of the size of the company or its payroll.
Sourced from ASIC, SmartCompany. Original article.
