Insolvency reforms that will allow small businesses to restructure their debts or wind up their operations faster have now kicked in.
Changes to Australias insolvency framework have been in effect since 1 January, allowing eligible businesses experiencing financial distress to access a new, simplified debt restructuring process, or enter into a new simplified liquidation pathwayto allow for a faster and lower-cost liquidation process.
The new processes will be available to incorporated businesses with liabilities of less than $1 million.
Businesses will also need to have paid all entitlements that it owes its employees and have their tax lodgements up to date.
The simplified debt restructuring process will involve a small business res…
Read the full article at: https://www.accountantsdaily.com.au/business/15217-small-business-insolvency-reforms-now-in-place