Australia’s bankruptcy laws overhauled to save more businesses

The federal government is set to overhaul Australia’s bankruptcy laws, to help more businesses get through the effects of the coronavirus pandemic.

Hundreds of Aussie businesses have already entered insolvency this year, while thousands of others have been propped up by the JobKeeper package.

But, when that begins tapering off from this month, there’s a worry more will be pushed over the edge.


The Treasurer has announced changes to the current bankruptcy laws that hopes to give businesses more control over the insolvency process.

It’s understood it will ensure a flat fee for companies that have to call in advisors to help them out of trouble.

“We want businesses to have more control as they seek to restructure and to repay their liabilities,” Frydenberg told The Today Show this morning.

“Right now the current insolvency process sees the small businesses hand over the keys, their assets are eaten away in fees to insolvency practitioners or to lawyers or to accountants and to others.

“Where as a lot of these businesses are viable businesses. 

“Because of the health restrictions, they have seen their bills rack up but they can get to the other side, so we are giving them the best way to do that,” he said.

The Treasurer will outline more details of the government’s fiscal strategy in a speech to the Australian Chamber of Commerce and Industry today.