Restructuring Insights

Business recovery or liquidation? Understand your options early ‘We’re all in this together’, has been a common catch cry during the pandemic, but as 2021 nears its end, some business owners may be feeling more alone than ever and unsure of their options.

Your best ally in the worst times

23 September 2021

This month, The Restructuring and Recovery team had a Q&A session with Mitch, who is based in Queensland and has over 20 years of experience in the insolvency profession. He is a straight-shooter; an honest and upfront professional who is helping business owners, many of whom are facing their worst times in business. Ever.

Lingering Business Uncertainty and Emerging Risks

16 September 2021

RSM’s new Corporate Advisory Hub at Port Macquarie on the Mid-North Coast of NSW has seen increased enquiries from businesses that are struggling to deal with the day-to-day uncertainty and rising risks in their business.

Lingering Business Uncertainty and Emerging Risks

15 September 2021

New warning notices from ATO for businesses with $100k+ tax debt

30 August 2021

Frank Lo Pilato, Jonathon Colbran

Under laws introduced in 2019, the ATO is now issuing warning notices to businesses with tax debts over $100,000 that are now 90 days or more overdue.

New warning notices from ATO for businesses with $100k+ tax debt

Australian small business owners matter

17 August 2021

Australian small business owners matter: how you can support them Our RSM Recovery and Restructuring team know and appreciate how important small business is to Australia’s economy.

Bankruptcy and the family home

10 August 2021

One of the main concerns a person has when becoming bankrupt is “what will happen to the family home?”

Having a failing business is mentally tough

12 July 2021

This month Andrew Bowcher, an RSM Partner based in Wagga Wagga, shares his personal experience of working with people who are facing potential bankruptcy. After nearly 20 years with RSM, he has worked with a lot of clients and heard a lot of personal stories.

5 tips for SME business owners post JobKeeper

3 June 2021

Stories of challenge, loss and triumph are being shared by our clients with our Restructuring and Recovery team on a daily basis. Bushfires, floods and a global pandemic - Australian business owners of all sizes and from all sectors are emerging from an unprecedented time of health and natural disasters.

How bankruptcy impacts property, employment, income and your superannuation

17 May 2021

The following table is an overview, in general terms, of the common examples of property retained by a bankrupt and available to a bankruptcy trustee based on the provisions of the Bankruptcy Act, 1966 and the various currently prescribed statutory limits, which are subject to change.

Simplified debt restructuring: A factsheet for small business

14 May 2021

As part of changes to Australia’s insolvency framework that came into effect on January 1, 2021, eligible small businesses trapped under the weight of insurmountable debt can now access a simplified debt restructuring process.

RSM Asset Protection Series: The basics of asset protection

6 May 2021

Myles Pover, Tim Gumbleton FCA

What are the best asset protection strategies? In our continuing series on asset protection, this article considers some of the basic asset protection strategies and aims to provide a starting point for those contemplating the risks associated with their business.

What’s a debt restructuring plan?

9 April 2021

The Australian Government introduced legislation that commenced on 1 January 2021 offering new avenues for small businesses facing insolvency (cannot pay their debts).

Do you qualify for the Small Business Restructuring process?

29 March 2021

Do you qualify for the Small Business Restructuring process? Small businesses in financial distress are now able to access a simplified debt restructuring process if they are eligible.

RSM Asset Protection Series: The family home

15 February 2021

Gavin Stacey, Tim Gumbleton FCA

When a business or other venture fails, the primary concern many people have is their level of personal liability. Mainly, “How much am I personally liable for, and will it impact my family?”.

Superannuation & Bankruptcy - all you need to know

5 February 2021

An individual’s superannuation is generally considered to be somewhat of a safe haven when contemplating asset protection, financial risk management, and the implications of bankruptcy.

When to develop a small business restructuring plan

21 January 2021

Do you have a small business with too much debt? What you need to know about the new small business insolvency reforms.

Government’s small business insolvency reforms

11 December 2020

Andrew Bowcher

In late September, the government announced potential changes to Australia’s insolvency framework and subsequent amendments to the Corporations Act 2001.

Proposed Insolvency Reforms for Small Businesses

1 October 2020

On 24 September 2020, Treasurer Josh Frydenberg announced significant insolvency reforms to commence on 1 January 2021 (subject to legislation).

COVID-19 and the impact on insolvencies

12 August 2020

Last week the government announced a new and more targeted extension to the stimulus spending supporting organisations in Australia that remain affected by COVID-19.

Do you have a business recovery plan?

12 May 2020

The relaxation of the COVID-19 protocols is good news for business, but… What’s your plan now? Do you have a recovery plan?

A calm approach to crisis: develop smart plans and avoid rash decisions

1 April 2020

The past couple of months have certainly been a rollercoaster as we adjust to a new way of working, and evaluate the effect that our national response to the health crisis will have on our livelihoods.

A calm approach to crisis: develop smart plans and avoid rash decisions

Insolvency Reform Edition 21 | Is it time for radical restructuring reform?

31 March 2020

The reckoning - A Black Swan event in the form of a pandemic will test the capacity of personal and corporate insolvency regimes to deal with the impact of the pandemic on the financial position of individuals, corporations and incorporated associations.

Personal Property Securities Register (PPSR) Pitfalls

25 March 2020

Since its establishment in January 2012 under the Australian Personal Property Securities Act 2009 (“PPSA”), the Personal Property Securities Register (“PPSR”) has transformed the way most security interests are registered and identified.

Director Penalty Notices - Changes to Directors of companies personal liability

24 March 2020

Robert Crombie

Companies are often used as an asset protection tool in business. Directors are able to protect personal assets through the corporate veil where only assets of the company can be used to settle liabilities.

Changes to Directors of companies director penalty notices

Insolvency - Temporary relief for financially distressed businesses

23 March 2020

The Government has announced measures to extend relevant time periods for the expiration of statutory demands (Companies) and bankruptcy notices (Individuals) from 21 days to six months.

What happens when my company goes into liquidation?

26 February 2020

Travis Kukura

The fight to keep a struggling business alive can be physically, mentally and emotionally draining. While a part of you may wish to cut and run, the other part (usually the part that helped launch the business in the beginning) continues to push – exhausting every possible means to stay afloat.

Voluntary liquidation: 5 signs it may be time for your company

26 February 2020

Travis Kukura

The demise of a company can catch any director off guard – especially if you run an established business and are no stranger to dealing with cash flow ups and downs. But regardless of whether your business is in its fragile infancy or has been around for decades, the prospect of liquidation is equally frightening.

How a bank may decide to lend your business money

15 January 2020

When you have a great business idea or want to expand an existing business, a loan can make all the difference in realising your dream. You may choose to seek credit from a bank over an investor or another private lender because they:

How a bank may decide to lend your business money

What your bank may do when you can’t pay a business debt

15 January 2020

The day you walked into your bank and asked them to fund new equipment or supplies for your start up or company expansion, you probably never dreamed a time would come when you couldn’t pay it back.

Voluntary bankruptcy: is it your best option?

4 December 2019

Mitchell Herrett

Finding yourself struggling under the weight of insurmountable debt is not something most people plan for in life.

Life during bankruptcy: is it really that bad?

3 December 2019

Mitchell Herrett

Fear of the unknown is undoubtedly stressful, but for someone facing bankruptcy, that fear can be debilitating.

Insolvency Reform Edition 20 | Is this enough?

31 October 2019

Insolvency inquiry focused on small business Despite the growing chorus of those calling for a root and branch review of insolvency law and practice the Government is funding a narrowly focused inquiry by the Australian Small Business and Family Enterprise Ombudsman (“ASBFEO”), Kate Carnell.

How to avoid debt collection with smart business practices

24 October 2019

Hindsight can be wonderful in most areas of life, but not when it comes to being owed money by a person or business. When you find yourself in a sticky situation with a debtor, it’s not fun to have to look back and wonder, “How could we have avoided this?”

Information on Perth Bullion Company

8 October 2019

Bullion Bourse Pty Ltd (In Liquidation) – Formerly Trading As “Perth Bullion Company” and “Silver Solar” "The premises of Perth Bullion Company at 180 Wright Street, Cloverdale WA are now under the control of Mr Ben Welsh of Engelhard Nominees Pty Ltd. No third-party goods remain on the premises"

Debt Collection 101: from a letter of demand to legal action

8 October 2019

No one likes to be owed money, but when you’re a business owner and have outlaid time and money for products or services that have gone unpaid, it can be particularly infuriating. As financial specialists, our restructuring and recovery team understands all too well the pain and frustration unpaid debts can cause.

WPG Resources Ltd - Update on Administration

1 October 2019

18 November 2019 WPG Resources Ltd – Extension of time to hold the 2019 AGM The Company has been granted further relief by ASIC to defer the requirement to hold the 2019 AGM.

Where is your business in the asset protection lifecycle?

26 September 2019

“Planning is bringing the future into the present so that you can do something about it now.” - Alan Lakein

What is Asset Protection?

23 September 2019

What does asset protection do?

Directors now immediately liable for overdue superannuation amounts

5 September 2019

Frank Lo Pilato

From April 1st 2019, directors may be held personally liable for overdue superannuation from the moment it becomes overdue.

Directors now immediately liable for overdue superannuation amounts

Why tax time is the perfect time to review your assets

4 September 2019

Think for a moment about everything you own: house, property, cars, caravans, stocks, bonds, savings, and more. Think about how long it took you – and how hard you worked – to get it.

When insolvency looks likely: do you need safe harbour?

10 April 2019

If you’re in touch with your company’s financial position and receive regular (if not daily) updates, you should be able to see the writing on the wall well before the situation becomes dire. But how do you know when you’ve passed the point of 'not doing well' and entered 'insolvency' territory?

Insolvency Reform Edition 19 | Another Hole in the Corporate Veil

1 March 2019

A Bill with big consequences for company directors was introduced to the House of Representatives on 13 February 2019. It was quickly referred to the Senate Economics Legislation Committee (“the Committee”) on Valentine’s Day. The Committee is scheduled to report on the Bill on 26 March 2019.

Time’s up: why you may need to renew your PPSR registration

5 February 2019

Happy 7th anniversary to the Personal Property Securities Register (PPSR)!

Insolvency Reform Edition 18 | Open Season on the Phoenix

13 September 2018

The Government has proposed radical change to combat the estimated $5.13 billion annual cost to the economy of illegal phoenix activity. The draft legislation targets directors and enablers of this activity. An expansion of director penalty regime to include GST is also proposed.

Australia’s new ipso facto regime is up and running — are you ready?

27 August 2018

The newly-introduced ipso facto laws aim to improve the likelihood of a successful restructure by preserving the standing of contracts (and hence goodwill in contracts) after filing for insolvency. We take a closer look at the new reforms which began operation on 1 July 2018.

Insolvency Reform Edition 17 | The Sequel 10 Years in the Making: Protecting Employee Entitlements - July 2018

5 July 2018

This article discusses proposed reforms to strengthen the protection of employee entitlements and asks if the proposed reforms will make it through Parliament in their current form. VIEW THE PAST EDITIONS OF INSOLVENCY REFORM >>

Oppressive behaviour as a director will bite you in the wallet

17 May 2018

The exercise of directors’ powers came under close scrutiny in the recent decision In the matter of Optimisation Australia Pty Ltd [2018] NSWSC 31, and the directors lost out against a minority shareholder who

Insolvency Reform Edition 16 | Is it time?

3 May 2018

This article discuesses whether it is time for Insolvency Practice Standards contained in the ARITA Code, to be given the force of law. VIEW THE PAST EDITIONS OF INSOLVENCY REFORM >>

Appeal helps liquidators sleep easy

10 April 2018

Phew!Liquidators breathed a small sigh of relief at the decision delivered on 9 March 2018 to the appeal in to the Linc Energy Ltd (In Liquidation): Longley & Ors v Chief Executive Dept of Environment & Heritage Protection decision which was delivered early in 2017.

Insolvency Reform Edition 15 | 1 year bankruptcies. Will we regret this?

13 March 2018

This article of Insolvency Reform discusses the Bankruptcy Amendment (Enterprise Incentives) Bill 2017.

Company directors get a safe harbour in relation to potential insolvent trading claims

4 December 2017

On 18 September 2017, what has become called “the safe harbour defence”, became available to company directors from claims against them for allowing the company to incur debts whilst insolvent (“insolvent trading”). This reform was part of the Government’s National Innovation and Science Agenda launched in late 2015.

The safe harbour defence has now become available to company directors .

Tips to avoid failure for small business - Part 2

24 November 2017

In Part 2 of this series, we provide some key advice for reducing debt risks for small business owners.

Tips to avoid failure for small business - Part 1

6 October 2017

David Kerr, Jonathon Colbran, Mitchell Herrett, Neil Cribb, Tim Gumbleton FCA

Small business owners take note! At RSM, we have seen many businesses with cash flow problems or debt recovery issues successfully turned around as a result of early action on the part of directors and business owners.

Insolvency Reform Edition 14 | Independence: The sky is not falling

1 September 2017

This article of Insolvency Reform discusses the recent Network Ten decision and its implications on independence requirements for insolvency practitioners. VIEW THE PAST EDITIONS OF INSOLVENCY REFORM >>

Insolvency Reform Edition 13 | Is Independence Dead?

21 July 2017

This article of Insolvency Reform covers the recent court challenge around independent insolvency practitioners. View the past editions of insolvency reform >>

Directors and creditors take note: Changes to the claw-back rules

28 June 2017

In a liquidation, a liquidator has the right to take back property or money that the debtor improperly gave away before the liquidator was appointed.

Insolvency Reform Edition 12 - June 2017 - Ahoy! A safe harbour?

16 June 2017

Ahoy! A safe harbour? View the past edition of the Insolvency Reform newsletter - Insolvency Reform Edition 11 - May 2017 HERE

Insolvency Reform Edition 11 - May 2017

5 May 2017

THE RISE OF THE PRE-PACK View the past edition of the Insolvency Reform newsletter - [Insolvency Reform Edition 10 - April 2017] here

Can you trust a Trust?

21 April 2017

A recent decision by a Victorian Court may settle the confusion associated with the appointment of a liquidator to a corporate trustee of a trading trust. Robson J in Re: Amerind has chosen to follow aspects of Brereton J’s decision in the (NSW) case of Re: Independent Contractors which attracted a degree of criticism at the time.

Insolvency Reform Edition 10 - April 2017

5 April 2017

A plethora of issues A great deal has occurred since our last Insolvency reform newsletter.

Insolvency: What does it really mean?

21 March 2017

Most directors should be aware that they may be made personally liable for any unpaid debt their company incurs while it is insolvent. In February’s newsletter, we gave an introduction to insolvency as well as some tips on how to avoid it.

Insolvent Trading: What it is and how to avoid it

15 February 2017

To remain viable, any company needs to ensure that it is able to meet its debts when they are due, and to allow enough working capital for future financial obligations. Once a company can not pay its debts as and when they fall due, it is said to be insolvent.

Insolvency reform edition 9 - February 2017

10 February 2017

The Ariff reforms

Personal Insolvencies on the Rise

14 December 2016

Andrew Bowcher, Frank Lo Pilato, Greg Dudley, Richard Stone

In a sign of the challenging economic circumstances that face certain industries and geographic areas throughout Australia the number of personal insolvencies in Australia has risen by 4.4% in 2015 / 16 as compared to 2014 / 15. This is the first increase in formal personal insolvencies since the Global Financial Crisis.

Insolvency reform edition 8 - December 2016

13 December 2016

Treasury’s User Pays Model Treasury’s ideological crusade Despite intense lobbying by ARITA and insolvency professionals Treasury has refused to back down from the ideologically driven one size fits all approach to funding ASIC.

Protecting your Assets – the PPSR is (most likely) for you!

16 November 2016

Andrew Bowcher, Jonathon Colbran, Neil Cribb, Peter Marsden

The Personal Property Securities Register (PPSR) has been in operation since 30 January 2012, yet many businesses continue to be ignorant of the PPSR by not understanding the nature of their agreement with customers, failing to register or registering incorrectly.

Untrustworthy advisers exploit unsuspecting directors

21 September 2016

Peter Marsden, Frank Lo Pilato, Andrew Bowcher, Neil Cribb

Our August Newsletter ('Phoenix Rising: ASIC Keeps Eagle Eye on Professional Adviser') noted ASIC’s prosecution of a business adviser who assisted a director to breach his statutory duties.

ASIC keeps eagle eye on professional advisers

23 August 2016

Andrew Bowcher, Jonathon Colbran, Neil Cribb, Peter Marsden

The Australian Securities and Investment Commission (ASIC) has demonstrated a continued commitment to investigating and prosecuting professional advisers who aid in breaches of director duties, or who are involved in phoenix activity.

How SMEs can reverse their exposure to insolvency risk

25 May 2016

Peter Marsden

Renewed interest by the ATO in recovering outstanding debt serves as a wake-up call for countless Australian companies that only manage to continue trading with insufficient cash flow due to a benign interest rate environment and by not complying with debt obligations.

Resources Slowdown – coming to a business near you

24 May 2016

Andrew Bowcher, Jonathon Colbran, Neil Cribb, Peter Marsden

We are reminded daily of the effects of declining investment in mining construction and the collapse in commodity prices on the Australian economy.

Insolvency reform edition 7 - May 2016

10 May 2016

The government’s proposals paper The government has released its proposals paper titled Improving bankruptcy and insolvency laws.

Insolvency reform edition 6 - April 2016

2 May 2016

Funding ASIC

Director Penalty Notices - An explanation of the Director Penalty Regime

13 April 2016

Andrew Bowcher, Frank Lo Pilato, Mitchell Herrett, Neil Cribb, Peter Marsden

Insolvency reform edition 5 - March 2016

29 March 2016

A step too far? The government’s proposal to reduce the term of bankruptcy from three years to one year has been the subject of recent debate. This proposal forms part of the government’s National Innovation & Science Agenda.

Cyber risks: How SMEs can protect themselves and their customers

9 March 2016

Michael Shatter

Small- and medium-sized enterprises (SMEs) are often at risk of the same scams and cyber attacks that affect individuals, and should take steps to protect themselves, according to RSM Australia.

Insolvency reform edition 4 - February 2016

26 February 2016

Background

Insolvency reform edition 3 - January 2016

18 January 2016

The ugly duckling and the swan

Insolvency reform edition 2 - December 2015

9 December 2015

Taking the leap

Secured creditor’s right of subrogation confirmed

3 December 2015

A recent decision in the Federal Court has confirmed that when a secured creditor has paid outstanding employee entitlements from the realisation of circulating assets, they have the right to subrogate into the position of employees and receive any dividends paid.

Insolvency reform edition 1 - November 2015

25 November 2015

Chapter 11 for Australia? Innovation Minister Christopher Pyne has declared changes to insolvency laws will be part of the innovation statement expected to be released by the government next month. It is claimed business groups have lobbied the government to move Australian insolvency laws more toward the US model.

PPS - how can landlords best protect themselves from an insolvent tenant

8 October 2015