Key takeaways

Two recent Federal Court decisions serve as a strong warning to debtors seeking to use Part X of the Bankruptcy Act 1966 (Cth) (the Act)¹ as a mechanism to defeat a creditor’s petition. The Court has demonstrated a willingness to intervene where Part X of the Act is invoked in circumstances that undermine the transparency and integrity required by the regime.

Part X of the Act allows a debtor to propose a Personal Insolvency Agreements (PIA) as an alternative to bankruptcy.

At approximately 9pm on 3 February 2026, the Upper House passed the Workers Compensation Legislation Amendment (Reform and Modernisation) Bill 2025, with a number of significant changes to the version that was previously passed in the Lower House in November 2025.

The Bill was accordingly returned to the Lower House, and at 3:30pm on 4 February 2026, the Lower House passed the amended version of the Bill.

The Bill now awaits assent.

While the Workers Compensation Legislation Amendment Bill was passed in late 2025, there is still another significant piece of reform before Parliament.

The Workers Compensation Legislation Amendment (Reform and Modernisation) Bill 2025 passed the Lower House in November and is now scheduled for its second reading in the Upper House tomorrow.

If passed in its current form, the Modernisation Bill will introduce further reforms to the NSW workers compensation scheme. Key proposed amendments include:

In the matter of Leralais Pty Ltd [2025] NSWSC 893

In a recent Supreme Court of New South Wales decision, a property development company successfully resisted a winding-up application by proving it was solvent, despite having several unsatisfied judgment debts it was unwilling to pay.¹

Key takeaways