New insolvency rules commence

 

The measures from 1st January 2021 apply to incorporated companies with liabilities less than $1 million. 

 

 
For those businesses that are “unable to survive”, a new simplified “liquidation pathway” will apply for small businesses to allow faster and lower-cost liquidation.
 
To be eligible to access this new process a company must:
 
  • have total liabilities which do not exceed $1 million on the day the company enters the process – this excludes employee entitlements;
     
  • appoint a small business restructuring practitioner to oversee the restructuring process, including working with the business to develop a debt restructuring plan and restructuring proposal statement.
 
This principle has the potential to allow continuation of a longer term successful businesses hit by short-term or COVID cash flow difficulties.
 
 
AcctWeb

What our clients say

"The team at CP Partners Accounting & CP Financial Planners have provided our clients with expert advice in the areas of taxation, property structures, wealth creation, retirement planning, superannuation, insurance and general investment advice.

"We have undoubtedly found that the team at CP are experts in their fields and our clients have been extremely pleased with the results they have achieved....

Read more