As expected, there have been very few appointments for Small Business Restructuring (SBR) under the new legislation which became effective from 1 January 2021. ASIC has recently written to all insolvency practitioners advising them of their duty to report a company to them that the practitioner suspects does not satisfy the eligibility criteria for a SBR even though the practitioner was not appointed to the company.

The Modernisation of Business Registers received Royal Assent on 22 June 2020. The result from this legislation will be that there will be a new Commonwealth business registry and one Registrar will be appointed as opposed to the past 31 ASIC registers and Australian Business Register. Source: ASIC

As you may be aware, the Federal Government announced reforms to Australia’s insolvency laws which came into effect on 1 January 2021. The Small Business Restructuring (SBR) regime has been underutilised since its introduction with only 5 companies appointing a SBR practitioner leading to only 3 restructuring plans.

When there is financial stress, ownership breakdown, inability to commercially function, who are you going to call? We would like to think you pick up the phone and ring Helm. Not only are we registered insolvency practitioners but we are able to act as trustees for sale.

Bronwyn du Mont, Director of Debt and Lodgement Management advised AIIP members recently that the ATO was ramping up its action against non-compliant and non-engaging companies with high levels of debt.

If your clients or you have been impacted by the current COVID-19 movement and lockdown restrictions, unable to trade and experiencing financial distress, help is available. While there has been various federal and state support, for many businesses this may not be sufficient. 

Recently released numbers that have come from CreditorWatch and Xero, reveal a stark contrast to the corresponding numbers of only one month prior. The pressure is rising on for many businesses.

At the end of all these lockdowns, some businesses will bounce around and some bounce back. Just like the 2020 experience, the businesses which could work remotely and receive government funding will survive and are expected to thrive post lockdown; some even managed to pay their executives bonuses during this period. Some of these businesses included banks and cunning retailers who had their businesses already set up on the internet.

All directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation need a Director  Identification Number (DIN). The DIN is a unique identification number provided to director who has verified their identity with the Australian Business Registry Services (ABRS).

Welcome to our final newsletter for 2021 and we celebrate our 6th anniversary with our Black Tie Event held at the Tea Rooms,  Queen Victoria Building in Sydney.