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Insolvency Practices Inquiry

Insolvency Practices Inquiry discussion paper released

The Insolvency Practices Inquiry has heard a vast number of harrowing small business stories, highlighting the failures of the insolvency system as well as the challenges faced by industry professionals.

Through this discussion paper, we are seeking feedback on the development of a best practice framework for small businesses facing insolvency and for practitioners managing external administrations.

The discussion paper was released on 19 December 2019 and submissions have now closed.

Download the Discussion Paper.

 

Share your story

We invite small and family businesses that have faced financial difficulties and restructured or wound up their business to share their stories by completing this survey.

The survey will close COB on Friday 21 February 2020.

Alternatively, you can email us at inquiries@asbfeo.gov.au

 

Background

On 10 October 2019, the Australian Small Business and Family Enterprise Ombudsman launched an inquiry into the insolvency system, to investigate if current insolvency practices achieve the best possible outcome for small and family businesses in financial trouble.

Our Small Business Loans Inquiry identified a lack of transparency for the small business owner when a creditor commenced debt recovery action. The small business owners felt they had lost control of their business as they were unable to contribute to, or obtain copies of, reports by insolvency practitioners. As the cases reviewed frequently ended in the business being wound up, the process appeared poorly managed to the small business owners and resulted in less than ideal outcomes for the owner, the lender and creditors of the business.

This inquiry will identify areas where practices can be improved and recommend changes to the system to achieve fairer outcomes for all parties involved.

A final report to be handed down in March 2020.

If you choose to participate:

  • you must not provide information that would be in breach of a confidentiality agreement
  • the information provided to the inquiry is ­not covered by parliamentary privilege.

Importantly, the Ombudsman cannot change the outcome of your issue, fund or intervene in legal actions or get you compensation.

 

Download:

Terms of Reference (PDF 214KB)

Reference Group (PDF 96KB)

Media announcement

 

Submissions

Reference Number Name of Contributor
II001 Confidential
II002 Solvency Accountants (PDF 1MB)
II003 Chartered Accountant Australia and New Zealand (PDF 125KB)
II004 Buchan, Jenny (UNSW) (PDF 1MB)
II005 Confidential
II006 NSW Government Small Business Commissioner (PDF 121KB)
II007 Victorian Farmers Federation (PDF 421KB)
II008 Confidential
II009 Law Council of Australia (PDF 173KB)
II010 UNSW Tax Clinic (PDF 260KB)
II011 Pitcher Partners (PDF 255KB)
II012 Financial Counselling Australia (PDF 357KB)
II013 Confidential
II014 Confidential
II015 Jacobs, Sue (PDF 195KB)
II016 Australian Restructuring Insolvency and Turnaround Association (PDF 1MB)
II017 Housing Industry Association (PDF 1MB)
II018 Australian Institute of Credit Management (PDF 512KB
II019 Australian Credit Forum (PDF 319KB)
II020 Australian Securities and Investments Commission (PDF 319KB)