The Australian Government Is Planning More Insolvency Reforms

Small businesses across Australia that operate via a trust will now be considered for further protection, as the federal government contemplates further insolvency reforms as part of the May 2021 federal budget. On Monday 3rd May, the Treasury announced that the Australian Government will be holding a consultation regarding how trusts are currently being treated […]

Insolvencies Increased by 61% In February 2021

Last month saw the number of insolvencies in Australia rise by 61%. The official statistics released by CreditorWatch indicate that insolvencies increased from 254 external administrations at the start of February to 408 administrations by the end of February 2021. With JobKeeper set to end on 28th March 2021, it is anticipated that the number […]

Treasury is considering an increase to the current Statutory Demand Threshold

The impact of the covid-19 pandemic has forced the government to make a huge number of changes to Australia’s insolvency framework. The Treasury is now deliberating about whether or not the current monetary threshold at which a statutory demand can be issued by a creditor should remain at $2,000 or should be permanently raised to […]

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 […]