2021 Federal Budget – Likely Insolvency Reforms
With Australia facing its second Federal Budget whilst under the cloud of the COVID-19 pandemic, the federal government has indicated that the 11 May Federal Budget will include various non-spending reforms focusing on the insolvency sector. Following the 2020 Federal Budget, which included sweeping insolvency reforms, the broadest of which had been seen in 30 […]
Update – Small Business Insolvency Reforms
This update follows on from Greg Quin’s article from 2020 regarding the rollout of the Small Business Insolvency Reforms by the Federal Government in response to the expected surge in insolvencies resulting from the financial impact of the COVID-19 pandemic. The Small Business Insolvency Reforms came into effect on 1 January 2021, with Treasury stating […]
ATO Activity in 2021 – Directors Personal Liability
With the JobKeeper scheme officially having ceased on 28 March 2021 and an ever-increasing $53 billion debt book, the Australian Taxation Office (“ATO”) has confirmed that it will now resume pursuing and enforcing debt recovery action. However, the ATO have assured that firm action will likely not be taken against clients if they reach out […]
Courts take a broad view of new Small Business Restructuring legislation – First appointment tests various aspects of the new processes
Well here we are at the end of March 2021 and following their introduction on 1 January, the new Small Business Restructuring (“SBR”) platforms have been activated just five times. Yes, you read it correctly – in the face of an anticipated tsunami of insolvency events, the SBR process is yet to gain traction out […]
Update – Modernising Business Registers and Director Identification Numbers
This update follows on from Greg Quin’s articles from 2019 and 2020 regarding the concept of Director Identification Numbers (“DIN”) and The Treasury Laws Amendment (Registries Modernisation and Other Measures) Bill 2019. We can now advise that Treasury, on 29 March 2021, released a consultation paper surrounding the planned rollout and implementation of its new […]
The clock is ticking – Time barred unfair preference claims from Liquidators
One of the duties of a Liquidator is to form conclusions about, and make recoveries from, creditors who received an unfair and preferential advantage over other creditors in the six months leading up to the Liquidator’s appointment, generally speaking. That process initially requires confirmation that the company in liquidation was in fact insolvent when the […]
The last of the anti-phoenixing laws are in. New director resignation requirements explained – important for honest directors too!
The Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2020 was introduced last year to bring into force new legislative measures to thwart phoenix activity and improve director accountability. A number of reforms to the Corporations Act 2001 and the Taxation Administration Act 1953 have already been enacted and include – Corporations Act New powers […]
An update on members’ voluntary liquidations and how they can assist your clients
The purpose of this article is to bring to your attention the purpose and procedures of a Members’ Voluntary Liquidation (MVL) and the benefits they can offer your clients as they conclude the affairs of their solvent companies. An MVL is often a tax effective method of bringing the affairs of a solvent company to […]
The one-year bankruptcy is back on the table – Possible personal insolvency reforms on the way in response to COVID-19
The Attorney-General’s Department is presently engaging in a stakeholder consultation process in relation to potential changes to the personal insolvency framework. In its discussion paper, the A-G’s Department raises the obvious and wide reaching financial challenges faced by individuals as a result of the COVID-19 pandemic. In addition to the temporary alterations to the […]
Winding up on ‘just and equitable grounds’
An accountant asked me the other day about how to wind up a company when directors and shareholders are no longer getting along. Under these circumstances, without consensus and cooperation, a voluntary appointment cannot be made. This situation is not that uncommon and a company does not need to be insolvent for it to […]