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.
The Treasury Laws Amendment (Corporate Insolvency Reforms Consequentials) Regulations 2021 make consequential amendments to regulations which support the ongoing operation of the small business insolvency reforms.