Restructuring and Recovery Services & Insolvency Support

Simplified debt restructuring: A factsheet for small business

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

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?

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?

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

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

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

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

Five questions boards should be asking emerging from COVID-19

With 2020 now behind us, there’s no doubt countless people across the globe will breathe a deep sigh of relief. While there are no guarantees that the worst of the COVID-19 pandemic is over, steps taken over the past nine months certainly place many in a better position to deal with whatever happens next.

Government’s small business insolvency reforms

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

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

5 elements to a successful not-for-profit amalgamation or merger

One of the first sectors to bear the brunt of an economic downturn is the not-for-profit sector which is resulting in many considering an amalgamation or merger. Reliance on community services increases, yet funding and donations can be hard to come by and higher poverty rates affect customers’ ability to pay for services.

COVID-19 and the impact on insolvencies

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?

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

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.

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

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

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.

Changes to Directors of companies director penalty notices

Director Penalty Notices - Changes to Directors of companies personal liability

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.

Insolvency - Temporary relief for financially distressed businesses

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?

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

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

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

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?

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?

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

Insolvency Reform Edition 20 | Is this enough?

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

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?”

WPG Resources Ltd - Update on Administration

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?

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

What is Asset Protection?

What does asset protection do?

Sign up for an Asset Protection event near you

Imagine losing all of your assets in one fell swoop – house, cars, savings… the lot. Insurance can never protect against every scenario, but asset protection can try.

Directors now immediately liable for overdue superannuation amounts

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

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.

Asset protection vs tax optimisation

In business, there are many risks that are simply out of your control. This thinkBIG report takes a closer look at one of the great conundrums for owners of small businesses - the balance between asset protection and tax optimisation.

When insolvency looks likely: do you need safe harbour?

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

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

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

Insolvency Reform Edition 18 | Open Season on the Phoenix

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?

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

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

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?

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

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.

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

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

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

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

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 13 | Is Independence Dead?

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

RSM expands Restructuring & Recovery division into Queensland

RSM Australia has announced the expansion of its Queensland operations to include a Restructuring and Recovery practice, led by Mitchell Herrett.

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

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?

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

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?

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

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

Insolvency: What does it really mean?

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

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

The Ariff reforms

Personal Insolvencies on the Rise

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.

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

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.

Leeton Soldiers' Club pays off creditors

The future looks bright for Leeton Soldiers’ Club following the recent payments to its creditors as facilitated by the agreement with the Club’s Administrators and the implementation of the necessary governance, capital and operational improvements to safeguard its future.

Untrustworthy advisers exploit unsuspecting directors

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

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.

Helping country children get ahead

Andrew Bowcher, the Restructuring & Recovery Partner of the Wagga Wagga office, has always been passionate about closing the gap between the cities and country for quality education.

Resources Slowdown – coming to a business near you

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

Restructuring and Recovery Services in Melbourne

We have a dedicated team of restructuring and recovery professionals that can undertake insolvency support services in Melbourne.

Insolvency reform edition 7 - 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

Funding ASIC

Director Penalty Notices - An explanation of the Director Penalty Regime

Insolvency reform edition 5 - 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.

Insolvency reform edition 4 - February 2016

Background

Insolvency reform edition 3 - January 2016

The ugly duckling and the swan

Insolvency reform edition 2 - December 2015

Taking the leap

Secured creditor’s right of subrogation confirmed

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

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.

Challenging times in the not-for-profit sector

Increased costs of compliance, changing government priorities, high administration costs are just some of the challenges which are being faced by the not-for-profit sector.

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

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

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.

Managing change at board and executive level

RSM recently held a lunch featuring a panel including Paula Dwyer, Professor Judith Sloan and Fiona McGauchie with Catherine Walter as MC to discuss how to manage change at board and executive level. This is a synopsis of the event.

ATO more aggressive in winding up businesses owing 100K+

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.

How to avoid becoming a zombie company

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

The rise of the zombie company

In the past, many underperforming companies managed to slip under the radar and escape insolvency. With market conditions changing, these businesses need to change course if they want to avoid going under.

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Business Restructuring and Recovery

We have a dedicated team of restructuring and recovery professionals in Albury, Brisbane, Canberra, Melbourne, Perth, Sydney and Wagga Wagga that can undertake insolvency support services.