Articles

Seems like we’ll do anything to avoid being bored. We view it as an annoying feeling to be avoided at all costs. Plus some of us feel pressure to always be engaged with something for fear of appearing lazy. And with our ever-growing to-do lists and so much technology at our finger tips to amuse…

Finally on 19 October 2017 the Government introduced into Federal Parliament the long promised Bill to reduce the default period of bankruptcy from three years to one year. Back in December 2015 the Federal Government announced its National Innovation Statement (“NIS”), which outlined proposed reforms to insolvency laws that are designed, amongst other things, to…

On 12 September 2017 the Hon Kelly O’Dwyer MP (Minister for Revenue and Financial Services) announced that “The Turnbull Government is taking action to crack down on illegal phoenixing activity that costs the economy up to $3.2 billion per year to ensure those involved face tougher penalties.” Illegal phoenixing is the stripping and transfer of…

(Blondie) (When a liquidator’s seemingly small omission can have serious consequences) In the 2016 case of Asden Developments Pty Ltd (in liq) v Dinoris (No 3) [2016] FCA 788 (a six day trial) the Federal Court found that a liquidator had in effect breached his duty as an officer under Section 180 of the Corporations…

(Morris Albert/Louis Gasté) I’m an accountant. An insolvency and forensic accountant. Through my training and work experience I’ve been told and taught to critically analyse, measure, consider, compare etc. To more objectively assess a position, consider options and develop strategies. To make a “proper” assessment in order to correctly advise and make good decisions. However,…

What defines our times? One significant factor is the drive for speed or immediacy. For most of us life is a careful balancing act, a finely timetabled life, in which everything works so long as no-one is ill. Weekends often offer little spare time but instead are occupied with shopping, family, household chores and getting…

  Debt agreements are at an all time high. Figures released by AFSA for the March quarter 2017 show that debt agreements are the highest on record at 3,584 for the quarter. Debt agreements reached record highs in Western Australia, Victoria, Queensland and South Australia. At the same time, we have seen the burgeoning of…

Catch Me If You Can is a 2002 American biographical film based on the life of Frank Abagnale, who before his 19th birthday pocketed millions of dollars posing as a Pan American World Airways pilot, a Georgia doctor and a Louisiana parish prosecutor. Played by Leonardo DiCaprio in the film, Abagnale’s primary scam was cheque…

(recent exacerbation of an old problem) Bankruptcy/CGT liability An individual can face a second bankruptcy as a result of a first bankruptcy that involves an investment property or other CGT assets. An individual’s CGT asset vests in a trustee because of the bankruptcy of the individual. However, no CGT event happens as a result of…

Last week, on 28 March 2017, the Treasury released draft legislation to amend the Corporations Act 2001 to reform Australia’s insolvency laws as part of its National Innovation and Science Agenda (NISA). The aim of the reform is “to promote a culture of entrepreneurship and innovation and help reduce the stigma associated with business failure.”…

Last month I received a random email that was the equivalent of the hackneyed, ridiculed and scorned Nigerian letter. An overseas bank manager had US$31 million in an account belonging to his client who had died and had ‘almost’ the same name as me. The manager wanted to ensure I got the money. Do such…

Forge Group Limited (“Forge”) collapsed in February 2014 due to losses on two power station construction projects. Creditors were owed an estimated $800 million and more than 1,500 employees were left jobless. The collapse has generated legal actions that have produced noteworthy decisions. The most recent is the Federal Court’s ruling on 1 March 2017…