New insolvency laws: 4 actions small business directors must take

Image credit: Scott Graham

There are four key actions that small business owners should take immediately, to ensure they are well positioned once they, or their suppliers, come off JobKeeper this month.

The changes in insolvency & restructuring rules that could catch out Australian businesses

Image credit: Scott Graham

“COVID Safe Harbour” insolvency rules have been replaced by legislation that includes a new, streamlined SME restructuring process…

Grocon goes into administration, putting subcontractors and suppliers at risk of not being paid

Credit: EJ Yao

One of Australia’s largest construction companies, Grocon, has gone into administration, leaving subcontractors at risk of unpaid contracts. Grocon is known for developments such as Melbourne’s casino, Eureka Tower and the Rialto Towers. Grocon’s chief executive, Daniel Grollo, blamed its administration on Infrastructure NSW for its handling of the Central Barangaroo project. “It is unfortunate… Continue reading Grocon goes into administration, putting subcontractors and suppliers at risk of not being paid

Government announces ‘most significant reforms’ to insolvency laws for small businesses

Credit: Evan Wise

The Federal Government has announced new insolvency rules that will allow small businesses to stay afloat whilst restructuring debts. This new insolvency regime is proposed to start from 1 January 2021, following the lifting of temporary insolvency measures introduced in March 2020. Related: Government extends temporary insolvency and bankruptcy protections Incorporated businesses with liabilities less… Continue reading Government announces ‘most significant reforms’ to insolvency laws for small businesses

Government agencies abandoning company wind-ups could cause insolvency tsunami

Government measures to prop up zombie businesses through the pandemic could actually be harming Australian small businesses, with new data showing company wind-ups have all but ceased in the past quarter. Prushka Fast Debt Recovery revealed through data sourced from court records that the Australian Taxation Office and other government agencies, typically the largest source… Continue reading Government agencies abandoning company wind-ups could cause insolvency tsunami

How to survive the Christmas blackout period

The Christmas Blackout period can bring Australian small businesses to a halt as wage bills take priority and payments begin to dry up. With everybody looking to preserve the cash they have available, business to business transactions begin to slow down from November through to February, leaving some business owners scrambling or tying themselves up… Continue reading How to survive the Christmas blackout period

Headed for financial trouble? Spotting the warning signs could make all the difference

Business insolvency is a very real risk for many small businesses but countless business owners are not spotting warning signs early enough. The reality is that around 60% of businesses don’t make it past the first three years, which is why business owners should seek help early on to ensure their financial health. But first,… Continue reading Headed for financial trouble? Spotting the warning signs could make all the difference

How blockchain will change the way small- to medium-sized enterprises carry out business

The increased use and application of blockchain technology is set to disrupt companies of all sizes, across all industries, and in almost every area, from payments and transactions to contracts and identity verification. Small- to medium-sized enterprises (SMEs) will not be immune to the disruption. Blockchain technology was created to facilitate online payments via a… Continue reading How blockchain will change the way small- to medium-sized enterprises carry out business

Late payment research from Amex and Xero highlights the cashflow burden for SMEs

Coinciding with the anticipated release of the Small Business Ombudsman’s report on its inquiry into payment times and practices, American Express has released research showing mid-sized Australian businesses owe $8 billion in outstanding payments to suppliers, with more than $2 billion currently overdue. According to Martin Seward, ‎VP, Small & Medium Enterprises at American Express Australia,… Continue reading Late payment research from Amex and Xero highlights the cashflow burden for SMEs