The Budget reaffirmed the Government's commitment to implementing reforms to support consumers and businesses affected by COVID-19.
The Government confirmed the implementation of a number of measures designed to reduce the regulatory burden to ensure a timely flow of credit and resolution for distressed business. These include:
- introducing a new process to enable eligible incorporated small businesses in financial distress to restructure their own affairs, drawing on some key features of the Chapter 11 bankruptcy model in the United States;
- simplifying the liquidation process for eligible incorporated small businesses to allow faster and lower cost liquidation; and
- support for the insolvency sector to enhance the capacity of the insolvency system to assist small businesses and manage the anticipated increase in the number of insolvencies, including the temporary waiver of registration fees associated with registration as a registered liquidator for approximately 2 years until 30 June 2022.