On 14.10.21, Treasury has released the Exposure Draft – Treasury Laws Amendment (Corporate Insolvency Reforms Consequentials) Regulations 2021 proposing to make consequential amendments to support the insolvency reforms that commenced on 1 January 2021.
The corporate insolvency reforms support small businesses by reducing the costs of external administration and the compliance burden for insolvency practitioners. The purpose of the Regulations is to ensure that these reforms are appropriately reflected across the Commonwealth statute book.
Most amendments are machinery in nature. However, it is worth noting that the proposed amendments to the Corporations (Aboriginal and Torres Strait Islander) Regulations 2017 will modify the Corporations Act 2001 restructuring provisions so that they are tailored to the special risks and requirements of the Indigenous corporate sector, and enable an eligible company to adopt the simplified liquidation process.
DATE OF EFFECT: The day after the final regulations are registered.
SUBMISSIONS are due by 1 November 2021. [LTN 198, 14/10/21]
[Tax Month – October 2021 – Previous Tax Month] 17.11.21