The federal government has passed legislation to simplify the liquidation and winding up processes for small businesses.
The parliament passed reforms to the Corporations Act 2001 and the Bankruptcy Act 1966 to establish a debt restructuring process for eligible small businesses and provide temporary relief for those seeking to enter the process, as well as establish a simplified liquidation process.
The reforms come into effect from 1 January 2021 after the bill was passed by parliament yesterday, 10 December. It was first introduced to the lower house on 12 November.
The Australian Small Business and Family Enterprise Ombudsman Kate Carnell welcomed the passage of the legislation.
These landmark reforms will give otherwise viable smal…
Read the full article at: https://www.crn.com.au/news/govt-bracing-for-wave-of-insolvencies-with-new-reforms-558900