Review of the insolvent trading safe harbour - Final report

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The Review of the Insolvent Trading Safe Harbour was tabled on 24 March 2022.

Background and history

The safe harbour was introduced as part of the Government’s National Innovation and Science Agenda. It provides protection for company directors from personal liability for insolvent trading if the company is attempting to restructure.

The Review was led by an independent panel of experts: Ms Genevieve Sexton (Chair), Ms Leanne Chesser and Mr Stephen Parbery. The Review took place from August to November 2021 and involved consultation and roundtable discussions with a range of stakeholders.

Legislation

The safe harbour was established under the Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Act 2017.

Section 588HA of the Corporations Act 2001 requires an independent review to examine and report on the operation of the permanent safe harbour for directors from liability for insolvent trading.