New insolvency reforms to support small business
The government has made changes to our Insolvency Framework to help more small businesses restructure and survive the economic impact of COVID-19.Where restructure is not possible, businesses will be able to wind up faster, enabling greater returns for creditors and employees.
Two new processes will be available for small businesses from 1 January 2021:
- a simplified liquidation framework
- a small business restructuring plan.
The processes will be available to incorporated businesses with liabilities of less than $1 million.
Businesses will also need to have paid all entitlements of its employees that are due and payable (including superannuation) and have their tax lodgements up to date.
Small businesses can view their lodgement information via the Business Portal.
- Find out more detail about the new processes on the government's Budget Website.
- Visit ASIC.
- If you have any enquiries or require assistance in progressing a matter, email InsolvencyPractitionerServices@ato.gov.au
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