The Benefits of Debtor in Possession & The Implications of the Small Business Insolvency Reforms Introduced on 1st January 2021
On 11th December 2020 Federal Treasurer Josh Frydenberg announced that the Australian Government would be making changes to Australia’s insolvency framework to help small businesses who have been affected by the economic impacts of COVID-19. The proposed changes came into effect on 1st January allowing businesses with liabilities of less than $1 million to restructure […]
Insolvency reforms and debtor in possession
In its bid to continue to assist small businesses experiencing financial distress during the pandemic, the federal government has proposed new insolvency reforms for SMEs with liabilities of less than $1 million, these are referred to as debtor in possession and are similar to Chapter 11 in the United Stated. These reforms will require struggling […]
Changes to the insolvency landscape
What do the recent Insolvency Reforms mean? Josh Frydenberg, the Federal Treasurer for Australia, has announced a new restructuring regime for struggling small to medium enterprises (SMEs) which adopts a ‘debtor-in-possession’ model for companies owing less than $1 million. Given that the legislation is yet to be released, we don’t intend to comment in great […]
Debtor in Possession
With the new rules coming into operation in early 2021, it is opportune to work out if the debtor in possession structure will be appropriate for your business. The debtor in possession rules will allow a business to continue to trade, and for the owners to continue to operate the business without the limitations of […]
C&D Adapting to rapidly changing landscape
Over the next few weeks, there will be a new colour and a change of logo to the C&D presence as we continue to adapt to the changing economic landscape. The last six months have been challenging for most businesses and we have been in the same boat. Whilst missing our Yeronga home, the opportunity […]
The Need for Tax Due Diligence
The Real Cost of Employee Turnover
Turnover Trends in Australia In the year to February 2019, 8.5% of the Australian workforce changed their employer or the business they operated. This is up from a record low of 7.7% in the year to February 2017. Across industries, hospitality workers were the most likely to change jobs, with 17.9% changing their employer or […]
Guide to Garnishee Notices
A garnishee notice is a serious issue. It means that a debt has reached the stage where the court has made an order that allows the creditor to seek repayment from a third party, whether it be your bank or your client or customer (or for employees directly from your employer). If you are issued […]
Avoiding Predatory Business Loans
With online lending and cash flow loans gaining popularity among small business owners as an “easier” financing option, it’s worth being cautious and noting some of the characteristics of predatory business loans.
Pitfalls of Cash Flow Loans
We have witnessed the rapid rise of short-term lenders, lending on cash flow. These loans tend to signal the end, rather than the start of the business lifecycle. We see these options as being a six-month indicator for the business to completely fail.
