Key Takeaways

Less than four months after Treasurer Josh Frydenberg announced reforms to current small business insolvency laws in response to COVID-19, the legislation has been enacted and will come into effect on 1 January 2021.

The new insolvency regime involves new processes for small business restructuring and relatively simplified small business liquidations with the purpose of improving the prospects of businesses continuing to trade and reducing costs, even if they cannot continue.

New Legislation

The Attorney-General Christian Porter today announced that Australia’s personal bankruptcy threshold for the issue of bankruptcy notices will change to $10,000 from 1 January 2021. The time for compliance with bankruptcy notices will revert back to 21 days.

The threshold for issuing a bankruptcy notice was temporarily increased from $5,000 to $20,000 in March 2020 in response to COVID-19 with the time for compliance extended to six months. These changes were due to expire on 31 December 2020.

OPS Screening & Crushing Equipment Pty Ltd v Gold Valley Iron Pty Ltd (in liq) (WASC 2020)

Key Takeaways

Note from the Editor

CONTENTS

PRODUCT/REGULATORY

Welcome to our final edition of the Life Insurance Bulletin for 2020!

Key Takeaways