COVID-19 Update

Insolvency

Directors beware – The ATO is back issuing Director Penalty Notices

By Chloe Moorfoot (Partner), Olivia Cassano (Lawyer) and Daniel Conti (Law Graduate) The Australian Taxation Office (ATO) has resumed pursuit of unpaid taxes, including the issuing of Director Penalty Notices (DPNs), as it seeks to recoup losses incurred during the COVID-19 pandemic. Division 269, Schedule 1 of the Taxation Administration Act 1953 (Cth) (Act) places … Read More

Slashing ASIC search fees and combatting illegal phoenix activity

In a bid to curb illegal Phoenix Activity and enable corporate transparency, the Government has implemented Director Identification Numbers and removed ASIC Search Fees.  ASIC Search Fees In the interests of promoting transparency and access to the law, the proposed 2022-23 Budget provides that: The Government will forgo receipts of $64.9 million over 3 years … Read More

2022 – 2023 Budget – Key Takeaways for Small Businesses

On 29 March 2022, Treasurer Josh Frydenberg delivered the 2022-2023 Budget, described as ‘the next stage in leading Australia’s strong economy into the future’ following ‘the biggest economic shock since the Great Depression.’ The Budget labelled as its key focus areas: Safer Australia, Cost of living, Regions, Workforce, Women, and Essentials. Included amongst these are … Read More

Preference claims are past their peak – The Full Federal Court affirms the abolition of the “peak indebtedness” rule

On 10 May 2021, the Full Federal Court of Australia handed down its decision in Badenoch Integrated Logging Pty Ltd v Bryant, in the matter of Gunns Limited (in liq) (receivers and managers appointed) [2021] FCAFC 64 (Badenoch v Bryant). The Full Court affirmed the abolition of the “peak indebtedness” rule with the Court preferring … Read More

Liquidated Damages after the COVID-19 Pandemic in the Construction Industry

The COVID-19 pandemic has severely disrupted the schedules for most construction projects in Victoria and Australia. As such, construction industry bodies (like the Master Builders Association) fear a surging wave of litigation will hit the construction sector as statutory demand and debt collection protections are lifted as the country recovers economically from the pandemic. Liquidated … Read More

High-Rises in Construction Insolvencies 2021: Builders to Feel the Pressure from Statutory Demand Protections Lifting and Other Reversals

During the COVID-19 pandemic, the Australian and Victorian government instituted several legislative changes and policies to reduce the financial impact suffered by businesses, including instituting additional protections and financial support packages. As the Australian economy slowly comes out of the pandemic, these measures are also being slowly being removed as the country reverts to pre-COVID … Read More

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