Senate Inquiry into Corporate Insolvency in Australia

In his role as Chairperson of the Insolvency Management Committee of Chartered Accountants Australia and New Zealand (“CAANZ”), Andrew Barnden of Rodgers Reidy recently appeared before the Joint Parliamentary Committee Inquiry into Corporate Insolvency, together with other representatives of the Accounting professions.  The Inquiry is considering whether a major overhaul of the Australian insolvency law is required. Andrew was able to provide useful insights into current corporate insolvency procedures and issues of concern that have been identified.  The final report from the Inquiry is due to be tabled in parliament by 30 May 2023.

Small Business Restructuring

As the graph below demonstrates, there has been a dramatic increase in the number of companies utilising the SBR laws.  During the month of February 2023, 87 companies appointed a Restructuring Practitioner in relation to the Debtor in Possession restructuring process for small businesses.  The increased use of the SBR laws reflects an increase in collection activity by the ATO and a greater understanding of the laws themselves.  Rodgers Reidy continues to be a market leader in the adoption of the SBR laws.

Rodgers Reidy have achieved excellent results for our clients using the SBR laws, restructuring their businesses and saving the vast majority from a formal liquidation or administration. We urge directors to consider this an option and act early, especially if they have an ATO Instalment Payment Plan in place and/or significant taxation liabilities.  Feel free to contact your local Rodgers Reidy office to discuss whether this option is right for your clients.

Winding Up applications filed with the Court in February 2023

Winding Up applications	Australia	NSW		VIC		QLD		WA		ACT		SA		NT		TAS
TOTAL	(No.)	(No.)	(%)	(No.)	(%)	(No.)	(%)	(No.)	(%)	(No.)	(%)	(No.)	(%)	(No.)	(%)	(No.)	(%)
	221	82	37	85	38	41	19	5	2	3	1	5	2	0	0	0	0

 

There were thirty five (35) winding up applications filed by the ATO in February 2023 compared with eight (8) in January 2023.

Formal Appointments in February 2023

Formal Appointments	Australia	NSW		VIC		QLD		WA		ACT		SA		NT		TAS
TOTAL	(No.)	(No.)	(%)	(No.)	(%)	(No.)	(%)	(No.)	(%)	(No.)	(%)	(No.)	(%)	(No.)	(%)	(No.)	(%)
	701	315	45	161	23	141	20	39	6	17	2	23	3	0	0	5	1
Court Liquidation	117	55	47	32	27	17	15	6	5	3	3	4	3	0	0	0	0
Creditors’/Members’ Voluntary Liquidation	490	229	47	110	22	95	19	25	5	11	2	17	3	0	0	3	1
Voluntary Administration	94	31	33	19	20	29	31	8	9	3	3	2	2	0	0	2	2

 

Rodgers Reidy is one of the foremost providers of insolvency, forensic and reconstruction services to distressed businesses throughout Australia, New Zealand and Asia. With a strong commitment to integrity and the community, Rodgers Reidy provides a professional and quality service, offering innovative, cost effective solutions.  Please contact any of our directors by clicking the appropriate office below for an initial consultation free of charge.

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