During the pandemic, an unprecedented level of fiscal support was provided to Australian companies. Many struggling firms were able to survive, sustained by a steady diet of taxpayer capital, existing in a commercial fantasyland. Additionally, record-low interest rates during the […]
The ATO’s approach With billions of dollars in outstanding company tax debt, the Australian Taxation Office (ATO) is under strict instruction to raise revenue and crack-down on poor compliance. What are Director Penalty Notices? A DPN (Director Penalty Notice) is […]
What is a personal guarantee? A personal guarantee is a legally enforceable promise (made by a natural person) to fulfil a third party’s obligations – such as those of a company – if it is unable to do so. Personal […]
Christmas is a joyous time, but for small business owners, it can also be a high-stakes, anxiety-inducing period. For many, financial viability depends on this seasonal influx in revenue. Unexpected challenges during this critical time can significantly increase the risk […]
Dealing with an insolvency practitioner For an accountant, an insolvent client is far from the ideal scenario. Many directors overlook the severity of their financial problems, even when the warning signs are staring them in the face. Accountants are usually […]
During the pandemic, many directors struggled to generate a stable income from the salary and dividends paid by their company. Consequentially, many drew funds from the company to supplement cash flow, using a director debit loan account. The ATO and […]
Overview On 8 July 2024, The Attorney-General’s Department announced a series of proposed amendments to the Bankruptcy Act 1966 (Cth) to ensure fairer outcomes for all Australians. These proposed reforms to Australia’s bankruptcy laws were drafted after extensive roundtable consultation […]
An alternative to bankruptcy Personal insolvency agreements (PIA) are outlined in Part X (Part 10) of the Bankruptcy Act 1966 (Cth), offering distressed individuals a flexible way to manage their debt and regain control of their finances. A PIA proposal […]
Understand your personal circumstances before filing for bankruptcy Effective navigation of financial difficulty requires careful consideration for the unique circumstances of the distressed individual. The following article contains 5 questions a financially distressed individual should ask themself, before filing for […]
The role of voluntary administrations When a company encounters financial difficulty, it can be placed into voluntary administration, to provide the required breathing space to assess its future financial viability. In this situation, the interests of the company and employees […]
The past few years have brought significant challenges to the construction industry. Supply chain issues, rising costs, fixed price contracts and increased activity from the ATO have created a perfect storm of conditions, that (as expected) has led to a […]
Pre insolvency advisors can pose a significant risk to distressed individuals and companies. In Australia, pre-insolvency advisors are largely unregulated. Unlike a qualified insolvency practitioner, an advisor is not trained to actively manage insolvency processes. They can be expensive and […]