The Minister for Revenue and Financial Services, the Hon Kelly O'Dwyer MP today announced that the industry is being given more time to implement the Insolvency Law Reform Act 2016 reforms.
This major reform will increase confidence in Australia's insolvency regime by:
- improving practitioner registration and disciplinary processes;
- providing new regulatory powers to ASIC;
- increasing practitioner insurance requirements;
- introducing new review and audit processes; and
- addressing conflicted remuneration and ensuring that offences and penalties are appropriate and proportionate.
"The reforms also ensure that our insolvency processes are modern and efficient – reducing costs, improving timeliness of administrations and improving returns to creditors," Minister O'Dwyer said.
"Most importantly, the changes will enhance the ability of creditors to terminate underperforming practitioners.
"Given the scale of these reforms industry is being given time to upskill and to update their software systems and business processes before commencement.
"The reforms to insolvency administration processes, to enhance efficiency, improve communication and increase competition, are now scheduled to commence on 1 September 2017.
"We will not defer commencement of those reforms directed at promoting competency and professionalism in the insolvency industry. The practitioner registration and discipline provisions, and enhancements to the ASIC's powers will commence on 1 March 2017, as planned.
"The Insolvency Law Reform Act represents the Government's first tranche of insolvency reforms, directed at improving the integrity and efficiency of Australia's insolvency laws.
"The Government's second tranche of insolvency reforms will enhance business rescue and support entrepreneurship, and are being progressed as part of the Government's National Innovation and Science Agenda," Minister O'Dwyer said.