Insolvency changes a lifeline

The Treasurer’s changes to insolvency laws will give many small businesses a chance to get advice, keep trading and keep people in jobs, Business Council chief executive Jennifer Westacott said.

“For thousands of small business people, this will be a lifeline, giving them the chance to keep their doors open and get through this pandemic.

“The changes will give thousands a chance to get advice, make a debt restructuring plan and keep their doors open. It will save businesses and jobs.

“With careful safeguards and agreement from creditors small businesses will get the flexibility to plan a path out of insolvency and keep control of their businesses.

“Big and small businesses rely on each other, so we welcome moves that will also keep crucial supply chains working.

“Today’s announcement sets the groundwork for considering broader insolvency reforms for all businesses through a detailed consultation process. We look forward to working with the government on those reforms.”