ASIC fines Mona owner David Walsh's company for late financial report

The owner of Hobart's landmark Museum of Old and New Art (Mona) has been fined nearly $200,000 after his company failed to lodge a financial report on time.

David Walsh is the sole director of Downward Spiral Enterprises, the parent company of Morilla Estate, which operates Mona.

The Australian Securities and Investments Commission (ASIC) said Downward Spiral was one of 22 large companies issued with infringement notices for allegedly failing to lodge their 2025 financial reports.

"The notices were issued as part of ASIC's ongoing surveillance and enforcement work focused on financial reporting compliance," ASIC said in a statement.

In June, the ABC revealed Downward Spiral had lodged eight years of accounts with the corporate regulator, giving a first glimpse of the finances of Mona's ultimate holding company.

The accounts from 2019 to 2025 showed more than $695 million in dividend income sustained the Mona gallery and other businesses in Mr Walsh's empire, including the Moorilla Estate winery, beer maker Moo Brew, and DarkLab, operator of the Dark Mofo festival.

They showed Downward Spiral made a profit of $63.9 million in 2024–25, largely driven by a $114 million dividend from an undisclosed source, offsetting ongoing losses from Mona.

A separate story by the ABC last year revealed Mona had racked up $408 million in losses since it opened in 2011.

Despite this, Mr Walsh insisted at the time that he was "completely happy with the finances".

Mona has since announced plans to establish a new art museum in Bangkok.

The ABC has sought comment from Mr Walsh via Mona.

ASIC investigation rakes in $4.3m in fines

Among the other companies fined by ASIC were hospitality firm Hemmes Group, jewellery retailer Prouds Jewellers and footwear retailer Spendless Shoes.

Each infringement notice was for $198,000.

ASIC said the 22 companies had paid a combined $4.3 million in fines.

"Payment of an infringement notice does not constitute an admission of guilt or liability," ASIC said.

"ASIC's investigation remains ongoing where companies have paid an infringement notice but still have outstanding financial reporting obligations."

ASIC said it had been conducting "data-focused surveillance" of large proprietary companies since August 2025.

In that time, it had received more than $13.7 million in infringement notice payments.

It said it had also engaged with 234 companies across a range of sectors this year, including 193 that had allegedly failed to lodge financial reports for 2025.

It said 147 companies had subsequently lodged one or more outstanding reports, with the remainder in the process of doing so.

ASIC said common reasons given for non-lodgement included audit-related issues, administrative oversight and inadequate resources to prepare financial reports.

It said some companies were unaware of their lodgement obligation until ASIC contacted them.

"Timely financial reporting gives shareholders, creditors and others dealing with a company important information about its financial position and performance, helping them make informed decisions," ASIC Commissioner Kate O'Rourke said

"Our enforcement actions over the past year send a clear message: companies must meet their financial reporting obligations and should not assume that non-compliance will go undetected.

"We will continue our data-focused surveillance into 2027 and will not hesitate to take further enforcement action."