Restructuring Insights

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

1 April 2020

Greg Dudley

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

David Kerr

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.

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

Richard Stone

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:

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

15 January 2020

Richard Stone

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.

How to structure property development?

8 January 2020

Adam Crowley

Changes in Purpose Typically, property developers will aim to structure a property development with one of three desired outcomes in mind:

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

David Kerr

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

David Mutton

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

David Mutton

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

Greg Dudley

“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.

Why tax time is the perfect time to review your assets

4 September 2019

Greg Dudley

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

David Kerr

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

David Kerr

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

David Kerr

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

David Kerr

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

David Kerr

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

David Kerr

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

David Kerr

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.

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, David Mutton, 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

David Kerr

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

David Kerr

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

David Kerr

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

David Kerr

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

David Kerr

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

David Kerr

The Ariff reforms

Personal Insolvencies on the Rise

14 December 2016

Andrew Bowcher, David Mutton, 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

David Kerr

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, David Mutton, 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, David Mutton

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, David Mutton, 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, David Mutton, 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

David Kerr

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

David Kerr

Funding ASIC

Director Penalty Notices - An explanation of the Director Penalty Regime

13 April 2016

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

Insolvency reform edition 5 - March 2016

29 March 2016

David Kerr

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.

QxBranch talks ‘digital disruption – the next revolution’ at RSM Finance Professional Symposium in Canberra

16 March 2016

Shoal CEO and QxBranch founder, Shaun Wilson and QxBranch Executive Director, Dr Ray Johnson (appearing by video from Washington, DC), presented to the RSM Australia Finance Professional Symposium in Canberra last Thursday, 10 March.

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

David Kerr

Background

Insolvency reform edition 3 - January 2016

18 January 2016

David Kerr

The ugly duckling and the swan

Insolvency reform edition 2 - December 2015

9 December 2015

David Kerr

Taking the leap

Secured creditor’s right of subrogation confirmed

3 December 2015

Richard Stone

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

David Kerr

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

Greg Dudley

Landlords and tenants may be tempted to dismiss the relevance of the Personal Property Securities Act(PPSA). After all, the answer is in the title of the legislation. It relates to personal property, not real property.

How to avoid becoming a shadow CRO

17 August 2015

Peter Marsden

Individuals helping Australian businesses to restructure or wind up may be putting their careers and livelihoods at risk by not understanding how their role is perceived under the law. If things go wrong, they can be pursued as a company ‘shadow director’ and may be held personally liable.

Cool weather but hot topics

5 August 2015

Manjimup district members of Master Builder' South West Branch recently attended the first in a planned series of updates on industry topics. Builders, suppliers, professionals and sub contractors from Manjimup and surrounds met at the town's Gateway Motel for presentations from RSM and RUIC Fire.

LandCorp promotes adaptive housing initiatives

3 August 2015

LandCorp chief executive Frank Marra was guest speaker at a boardroom lunch hosted by RSM in April to discuss the agency's latest adaptive and innovative housing initiatives.

Five steps a business should take in the digital age

1 July 2015

Ways of doing business are changing fast in the modern world, and failing to keep up could cost you dearly. There are five key steps a business should be taking in the digital age should they wish to retain their competitive edge and not be left behind.

Common business mistakes made by those in the building industry

27 June 2015

As tradespeople, you know the importance of preparing a job properly, whether it’s the foundations of a house or sanding back old paint, preparation is vital to getting the best result. Despite this, so many people fail to prepare their biggest job, which is their business and it’s often a costly and detrimental oversight.

ATO more aggressive in winding up businesses owing 100K+

21 May 2015

Frank Lo Pilato

Businesses owing the ATO $100,000 have been wound up as a new crackdown gathers momentum. This indicates a clear change of focus and increased enforcement for the ATO and the message is clear - get a payment plan in place ASAP, or face a real risk of being wound up.

Ten financial terms every franchisee should understand

30 March 2015

Many people go into business because they are passionate about the products or services they can offer as part of that business. Often, franchisees have chosen to purchase a franchise because it is a lower-risk business option than a start-up.

Advantages and disadvantages of cloud accounting

20 March 2015

The term cloud doesn’t really describe an actual thing, it is

How to finance your franchise

27 February 2015

One of the most pressing concerns for many franchisees is to find a way to cover the costs involved in purchasing and running a franchise, including the initial purchase, plant and equipment, premises fit-out, working capital requirements and more.

Digital disruption moving accounting software into the cloud

26 February 2015

In the simplest terms, cloud computing means storing and accessing data and programs over the Internet instead of your computer’s hard drive. The most common example in business today is internet banking – most businesses access their bank accounts through browser based software, with the data hosted in the cloud.

Managing your cashflow

16 February 2015

Managing your cashflow is crucial to running a successful business. Running out of liquid capital is one of the most common reasons that small businesses fail.

Make sure that fringe benefits are beneficial

11 February 2015

Andy Graham

The end of the FBT year is fast approaching, and it is a good time to reflect on your FBT plans for 2015-16. Fringe benefits are benefits that you provide to your staff that fall outside the categories of traditional wages and salaries. Examples of common fringe benefits include cars, low interest or interest-free loans and school fees.

How to avoid becoming a zombie company

11 February 2015

Like the traditional walking dead, zombie companies wander aimlessly and unsteadily, not quite alive but still moving.

Make innovation part of your company culture

10 February 2015

Innovation is fundamentally important to long-term business success. While you may be able to take on the main role of envisioning breakthroughs for your business, it never hurts to get input from your employees.

Improving your sales pitch

9 February 2015

Andy Graham

Getting a sales pitch right is incredibly tricky and there are many things that you need to consider. Even the slightest moment of uncertainty or hesitation can cost you the customer’s trust, and you need to be able to think on your feet in order to respond to difficult questions.

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Restructuring Insights