Financial reporting requirements cut-govt

Thousands of small and medium-sized businesses will save more than $35,000 each year under changes to financial reporting requirements.

The federal government is lifting the threshold at which private Australian companies are considered 'large' and are required to conduct financial auditing that costs about $36,950 annually.

The change means 2,200 of the nation's 6,600 large private companies will no longer be classified as such, with the sector expected to save $81.3 million collectively each year.