- In October, the Australian Government announced insolvency reforms
- Reforms introduce the small business restructuring plan
- Small businesses and their advisors are encouraged to know the early warning signs of financial distress
In October 2020, the Australian Government announced, as a part of its Jobmaker plan, reforms aimed at assisting small business to restructure when they are in financial distress, which has been particularly evident during the COVID-19 pandemic.
The reforms introduce the Small Business Restructuring plan (SBRP), which is designed to provide a simpler and more cost-effective alternative to the traditional Voluntary Administration (‘VA’) process. Under a VA process control is handed over to the Voluntary Administrator when they are appointed, however under the SBRP the small business directors remain in control of the day to day affairs of the business.
Bruce Gleeson FCA from Jones Partners and a member of CA ANZ’s Insolvency Management Committee has collaborated with CA ANZ to produce a summary of the insolvency reforms including the steps of the SBRP.
Significant insolvency changes to help Australian small business
Find out more about the most significant reforms to the insolvency framework in more than 30 years.Read more
Insolvency reform in Australia
Find out more about the legislation introduced to parliament, expected to start on 1 January 2021Read more
Simplified debt restructuring – a fact sheet for small business
Download the Government’s factsheet on the changes to Australia’s insolvency framework aimed to better serve small businesses, their creditors, and their employeesRead more