Changes to Australia’s insolvency framework took effect on 1 January 2021. The new measures represent the most significant insolvency changes made in the last 30 years, and are intended to reduce costs, cut red tape and help more small businesses recover from the pandemic.
The reforms introduce a new, simplified debt restructuring process. These measures apply to incorporated businesses with liabilities of less than $1 million – covering around 76% of businesses subject to insolvencies today, 98% of which have less than 20 employees.
For more details, download the Treasury factsheet for small business.