ASIC’s report on Part 5.3B – small corporate business restructuring
The small corporate business ‘restructuring’ process under Part 5.3B of the Corporations Act was introduced in 2021, in some criticized haste, consistent with the stated need to address potential high rates of insolvencies during the COVID-19 crisis. Numbers of companies accessing SBR have increased, well past the ending of COVID, although no doubt with legacy […]
Treasury’s role in insolvency law reform
With Treasury now comprising Ministers well qualified in economics,[1] and with a government focused on competition, economic dynamism and productivity, any reform of insolvency laws may take a new direction. This is reinforced by the transfer of personal insolvency to Treasury, so that both personal and corporate insolvency come within the one department. Related areas […]
Medium neutral citations of cases – a welcome change
I once caused some consternation at a law librarians’ conference by predicting that the authorised law reports would fade away in the near future. They seem to be held in reverence by some. The Federal Court has now announced that it will allow medium neutral citations (MNCs) in identifying cases; authorised report citations need not […]
A quarter of new bankruptcies to go to female trustees
The personal insolvency regulator, AFSA, has announced it will increase its gender equity target in the allocation of bankrupt estates to female practitioners, via the National Panel of Trustees, from 20% to 25%.[1] In doing this, AFSA says it is committed to “encouraging gender equity in the insolvency industry”, that is, in personal insolvency. AFSA […]
Continued fall in personal insolvency numbers
Personal insolvencies are continuing their fall in Australia with the April 2025 figures of 1,073 dropping from 1,122 in March 2025. There was also a slight drop in the March quarter 2025 figures compared to the March quarter 2024. April 2025 Of these 1,073, 586 were bankruptcies and 465 were debt agreements indicating a rise […]
INSOL Academics Barcelona – competition and insolvency law
I was pleased to have presented my topic on the intersection between competition policy and insolvency and rescue law before a distinguished international audience at the INSOL Academic Colloquium in Barcelona on 22 May 2025. The topic involves a tension between competition principles promoting efficient and innovative businesses and insolvency rescue laws offering remedial support […]
Australian “politicians’ truth crisis” – a disgrace
The ABC reports – Criminologists debunk claims of ‘youth crime crisis’ as data shows dramatic declines – that most youth crime rates have fallen significantly in every state across Australia. Criminologists say that politicians’ claims that we are in the grip of a youth crime crisis are not supported by evidence. It is those politicians who have […]
The economics of insolvency – the pain of liquidation is one way to get economic growth
Pre INSOL post I am pleased to have had my topic accepted for presentation at the INSOL Academics Colloquium in Barcelona on 22 May 2025 – Insolvency and competition law – parallel universes, serving contradictory goals, without coordination. My session is about the intersection of Darwinian economics and law, more precisely, between the economics of […]
Where’s bankruptcy nowadays?
It is a positive sign that the administration of the Bankruptcy Act has moved from Attorney-General’s to Treasury, sitting with ASIC and corporate insolvency, the ATO, ASBFEO and others – although under what Minister and in what part of Treasury is not yet explained. Apart from the Treasurer, we have the Minister for Housing, Minister […]
Insolvency & competition law – INSOL Academics – 22.5.25 – References
Insolvency and competition law – parallel universes, serving contradictory goals, without coordination – INSOL Academics Colloquium 22 May 2025, Barcelona– Michael Murray – References Competition law versus insolvency law: when legal doctrines clash, CG Paulus, (2013) 18 Unif. L. Rev. 65–77; Rehabilitating the UK Pre-Pack: A Critical Analysis and Proposals for Reform, Riz Mokal and Alfonso […]
Audit of ATO small business debt recovery
The ANAO is currently conducting an audit of the ATO to assess the effectiveness of the ATO’s management of small business taxpayer debt. The ANAO says it is asking: Are the risks relating to small business taxpayer debt appropriately managed? Does the ATO have a sound strategic framework to manage small business taxpayer debt? Does […]
A future where “tax just happens”
A Capability Review of the Australian Taxation Office has been conducted which foreshadows a future where tax obligations are paid automatically in a way that is integrated into the systems that taxpayers already use to transact and manage their affairs – where ‘tax just happens’. Apart from the significant improvement in timely tax payments, such […]
Increase in low bankruptcy numbers
Personal insolvencies increased in March 2025 but remain significantly lower than 5 or more years ago – 9,071 for July 2024-March 2025 compared with 16,777 for July 2019-March 2020. They totaled 1,122 for March 2025, rising from 908 in February 2025. Significantly, of the 673 bankruptcies, nearly 47% – 350, rising from 256 – were […]
Insolvency numbers – a positive slant
The Australian newspaper has again given a useful account of corporate insolvency numbers, although slightly premature given that personal insolvency numbers were not out until the next day: Insolvency wave builds, etc 29 April 2025. Corporate numbers are increasing as would be expected. Looking at these numbers positively, they may well indicate a useful culling […]
Insolvency law – has corporate rescue gone too far? 30 April, Sydney Law School
The Ross Parsons Centre for Commercial, Corporate and Taxation Law of Sydney University Law School is hosting a debate on the laws of insolvency and restructuring in Australia this Wednesday, 30 April 2025, at 5.30pm. The panel will be chaired by Adjunct Professor Richard Fisher AM and comprises Mr John Martin (formerly President of the […]
Family pets, family law and bankruptcy
In the division of family property on the breakdown of a marriage,[1] disputes between spouses about “companion animals” have been increasing, so much so that the law is being changed to give the family courts[2] power to decide which spouse gets the animal; that is, unless one spouse is bankrupt. Animals The legal and religious […]
Safe harbour adviser becoming liquidator
A liquidator gave pre-liquidation safe harbour advice under s 588GA of the Corporations Act to a company. The company ended up in liquidation and he then took an appointment as its liquidator. This breached the rules of independence, including of ASIC and ARITA, because as a liquidator, he would be required to review the advice […]
FEG v liquidators: remuneration priority over circulating assets
Problems regarding the priority of employee entitlements over the claims of the security holder, and the priority of the remuneration and expenses of a liquidator or receiver from the sale of assets under a circulating security interest remain unresolved. The government has not responded to the 2023 PJC Report on Corporate Insolvency, which recommended a […]
Appointment at the University of Sydney Law School
I am pleased to have been appointed to a Research Affiliate position at the University of Sydney Law School, in the Ross Parsons Centre for Commercial, Corporate and Taxation Law, working with Professor Jason Harris and others. Professor Ross Parsons taught me income tax law, as a 4th year elective, in my LLB at Sydney […]
Reserve Bank report on insolvency numbers’ “little threat to financial stability”.
Increases or decreases in the number of insolvencies in Australia are used, particularly now, as some sort of political weapon indicating government economic mis/management, and in order, perhaps, to sell ‘news’papers. See The worst is still to come! apparently – Murrays Legal The Reserve Bank’s Financial Stability Review of April 2025 provides an informed and […]
The do-not-call register – penalties according to literature and history
In a long judgment concerning breach of the ‘do not call register’, where 1,102,318 calls were made to numbers on the register “which would have caused annoyance and inconvenience to members of the public who had taken up the ability to list their number on the Register”, Justice John Logan has drawn upon history (Cromwell, […]
Personal insolvency numbers fall over 40% in five years
Numbers of personal insolvencies continue to fall. A projected 12,000 in 2024-2025 is likely compared with 21,078 five years ago. The numbers of personal insolvencies continue to fall with only 908 in February 2025, dropping from 940 in January 2025. Provisional personal insolvencies decreased in February 2025 | Australian Financial Security Authority Numbers have fallen […]
The new law’s limitations in controlling phoenix misconduct
I wrote the following commentary in February 2020, on the then proposed new anti-phoenix law, to assist the Department of Employment and Workplace Relations in relation to its Fair Entitlements Guarantee (FEG) Scheme. That new law was introduced – grandly titled “creditor defeating distributions” and “contribution orders”, under s 588FDB. I wasn’t that impressed. Now, […]
While some firms are “plunging into insolvency”, the numbers are lower or much lower than the long-term average
The Australian newspaper again most usefully reports on the numbers of insolvencies, this time in the building sector – and in strong terms: plunging, collapsing, surging, strangling and soaring.[1] This follows its earlier “the worst is still to come” story: The worst is still to come! apparently – Murrays Legal. The paper relays ASIC data […]