The Australian federal government has continued introducing temporary and potentially permanent insolvency law reforms intended to assist the economic repair efforts during, and following, the pandemic. In the latest development, which occurred in somewhat strange circumstances, the federal government has announced that it will shortly introduce new laws into parliament, which are intended to reduce complexity, time and the costs for small businesses to restructure their financial affairs.
Despite acknowledging that the new laws are the most significant changes to Australia’s insolvency regime under the Corporations Act (Act) in almost 30 years, the federal government has not yet engaged with the restructuring and insolvency (R&I) profession or other key stakeholders, including secured and non-secured creditor groups, R&I industry bodies and directors’ and officers’ organisations, on the suitability and implications of the new laws prior to their release.
