Last week the Federal Government announced proposed changes to the insolvency framework, for businesses with less than $1m in liabilities, from January 2021.
In a nutshell, allowing these businesses to utilise a simpler version of the Voluntary Administration process. Wherein, the directors retain control of the business and present a proposal to creditors for dealing with their debts.
Full details are currently limited, however, this appears to be a step in the right direction for small businesses who might be struggling as a result of COVID-19 or other financial pressures.
It will be interesting to see the full details on this plan in the coming months and I will continue to update you as more information is released.
For further information on the proposed changes I have attached the release treasury department.
