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 […]
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 […]
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.
Personal Insolvency and Business Impact
Businesses are launched with the best intentions, but even the most astute plans can be undone by changes in the business environment or competitive landscape, consumer tastes, rising costs, or cash flow problems.
Personal insolvency could also have a big impact, as your personal and business obligations are often closely intertwined.
Closing an insolvent business
If your business is unable to repay its debts, it could be insolvent. Closing a business can be a complicated and emotional time, but insolvent trading laws means directors should understand their options and make a decision as soon as possible. Seeking advice from insolvency professionals can make the process easier, help you stay fully compliant with the law throughout the process, and help you avoid unwanted surprises.