Federal Budget 2020-21: Restructuring & Insolvency

Current site :    AU   |   EN
China Hong Kong SAR
United Kingdom
United States

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.
On 2 August 2022, the Aged Care and Other Legislation Amendment (Royal Commission Response) Bill 2022 was passed (Aged Care Bill), introducing important regulatory changes to Australia’s aged care sector. The Bill makes numerous legislative amendments, including to the Aged Care Act 1997 (Cth) (Aged Care Act) and the Aged Care (Transitional Provisions) Act 1997 (Cth) (Transitional Provisions Act), and responds to various recommendations made by the Royal Commission into Aged Care Quality and Safety (Royal Commission) Final Report (Report). The Report identified the provision of substandard aged care services and perceived systemic failures in the aged care sector.[1]

08 August 2022

The Federal Court has refused an application to stay proceedings to quantify compensation for patent infringement (quantum proceedings) pending the outcome of separate parallel proceedings challenging the validity of the infringed patent on new grounds. The case is significant as intellectual property cases are regularly bifurcated with liability determined separately damages or an account of profits. A patentee may also bring consecutive infringement cases and therefore have two separate cases considering invalidity issues for the same patent running in parallel.

03 August 2022

Since the introduction of a nationwide Marketing Authorization Holder (MAH) system in 2019, licenses have linked directly to therapeutic products rather than manufacturers.

03 August 2022