On 24 September 2020 the Government announced reforms to Australia’s insolvency framework to better serve Australian small businesses, their creditors and their employees.
The reforms, which came into effect on 1 January 2021, introduced new insolvency processes suitable for small businesses, reducing complexity, time and costs. These processes enable more Australian small businesses to quickly restructure. Where restructure is not possible, businesses can wind up faster, enabling greater returns for creditors and employees.
Following the introduction of the small business reforms, amendments to primary and subordinate legislation are proposed to support the new insolvency processes.
Public consultation on the exposure draft legislation and explanatory material will close on 7 May 2021.