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 […]
Zombie Businesses in The Age of Covid-19
Running a successful business takes a lot of hard work and with the covid-19 pandemic many Australian businesses are facing an uncertain future. Sudden lockdowns and social distancing rules have made it difficult for businesses to generate the amount of revenue that they used to make in a world before covid-19. Once the governments covid-19 […]
Pubs in The Age of Covid-19
Pubs across Australia have been faced with many challenges during the covid-19 pandemic, as they try to remain profitable and abide by the governments social distancing rules. Data from Australian Bureau of Statistics illustrates that more than a third of Australian’s working in accommodation and food services lost work between March and April 2020. The […]
Small Business Insolvency Reforms Introduced to Help Struggling Businesses
Thousands of Australian businesses impacted by the covid-19 pandemic have been thrown a lifeline following the Federal Government’s decision to introduce small business restructuring reforms on 1st January 2021. The Federal Government’s insolvency reform package was passed by Federal Parliament on 11th December 2020. The new rules will offer a debt restructuring process intended to […]
The New “Simplified Liquidation Process” Introduced On 1st January 2021
A new Simplified Liquidation process was one of the key components of the Federal Governments recent changes made to Australia’s corporate insolvency framework. The changes were introduced on 1st January 2021, the Simplified Liquidation process aims to be a streamlined Creditors Voluntary Liquidation (“CVL”) for companies that are insolvent and have liabilities of less than […]
An Overview of the Small Business Insolvency Reforms Introduced on 1st January 2021
On 1st January 2021 the Australian federal government’s small business insolvency reforms came into effect thus replacing the temporary insolvency protections which were introduced on 25th March 2020 during the peak of the covid-19 pandemic. The reforms in the Corporations Amendment (Corporate Insolvency Reforms) Bill 2020 were passed through federal parliament on Friday 11th […]
The Future of Rural Australian Motels In The Age of Covid-19
The ongoing covid-19 pandemic has caused mass disruption in virtually every industry on the planet. Motels in small country towns across Australia are experiencing their fair shares of ups and downs as international travel is off the table and Australian tourists are restricted to travelling domestically. Craig Dangar from C&D Restructure & Taxation Advisory […]
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 […]