Insolvency in the construction industry

Voluntary Administration under Part 5.3A of the Corporations Act 2001 offers Australian companies a formal insolvency process where an independent liquidator investigates whether the business can be preserved. During this process, most unsecured claims are stayed while creditors, employees, and secured parties navigate distinct rights and exceptions. Understanding the strategic timing for directors, the decision-making power of creditors, and the specific protections available to employees proves critical t

Under Australia's bankruptcy system, there is no limit on how much income a bankrupt person can earn, though they may be required to make compulsory contributions if their after-tax income exceeds statutory thresholds. This article examines how income contribution calculations work, what thresholds apply based on the number of dependants, and why the system balances creditor interests with maintaining a reasonable standard of living for bankrupt individuals.

Trust structures can protect assets held for others, but they do not shield a bankrupt person's own entitlements, trustee indemnity rights, or transfers made to defeat creditors. The deed, financial records and transaction history determine whether trust property remains outside the bankruptcy estate or becomes available to creditors through beneficial interests, indemnity claims, or voidable transaction recovery.

An undischarged bankrupt faces strict legal obligations including cooperating with trustees, disclosing all property and financial changes, and obtaining consent before international travel. What are the criminal penalties for breaching these restrictions, and how can early disclosure and proper legal advice help navigate trustee negotiations more effectively than denial or delay?

Bankruptcy trustees can challenge pre-bankruptcy transactions under sections 120, 121, and 122 of the Bankruptcy Act 1966, targeting undervalued transfers, creditor-defeating arrangements, and preferential payments. Understanding the statutory tests, timing rules, and evidentiary requirements is essential for recipients facing clawback demands, as market value alone does not guarantee protection and poor documentation can prove decisive.

When a creditor seeks to make an individual bankrupt through a sequestration order, the process involves strict statutory requirements including judgment thresholds, bankruptcy notices, and court scrutiny. Understanding the procedural steps, potential defects, and strategic alternatives is essential for both creditors pursuing debt recovery and debtors facing insolvency proceedings.

A statutory demand is one of the fastest and most powerful tools for recovering undisputed debts from Australian companies, engaging insolvency provisions that give debtors just 21 days to respond. While it creates significant commercial pressure that often leads to payment or negotiated resolution, it must be used carefully for genuinely undisputed debts to avoid being set aside and incurring adverse costs.

Small business restructuring under Part 5.3B of the Corporations Act 2001 offers eligible insolvent companies with liabilities under $1 million a streamlined path to propose creditor compromises...

Asset protection during bankruptcy depends on genuine ownership, not trust labels. Property held for others is generally excluded from a bankrupt estate, but beneficial interests, trust debts, and trustee indemnities may still be recoverable. Transfers into trusts can be challenged under undervalue or creditor-defeating provisions if timing, consideration, and purpose raise concerns.

The decision casts doubt on what was a relatively settled position: a third-party payment could be a preference payment.

The Australian Government has released draft legislation proposing to ban non-compete clauses for workers earning below the Fair Work Act high-income threshold, currently $190,100 per year. The reforms are not yet law and are intended to commence in 2027, subject to legislation passing Parliament.

A Spent Conviction Order can limit when a criminal conviction must be disclosed, but it does not erase the conviction. Understanding when disclosure is still required for employment, overseas travel, Working with Children Checks, and professional licensing is crucial for anyone with a spent conviction navigating these complex obligations.

A NSW Supreme Court decision reveals that even a properly signed and professionally drafted Will can fail if the process doesn't adequately establish that the document reflects the testator's true intentions. The case examines the critical distinction between document preparation and comprehensive estate planning, particularly relevant as online Will services become increasingly common.

Western Australian local governments face new obligations under the Privacy and Responsible Information Sharing Act 2024, which introduces Information Privacy Principles and mandatory serious data-breach reporting. How should councils prepare their governance frameworks, policies, and incident-response capabilities to meet these requirements by the July 2026 and January 2027 deadlines?

Australia’s privacy reforms increase the importance of privacy as a governance issue for independent schools. Boards and executive teams should understand what personal and sensitive information their school holds, how it is accessed and shared, and where monitoring technologies, third-party platforms and automated decision-making tools are used.

Before amending a trust deed, it is important to carefully review the deed to determine whether the proposed amendment is permitted and what requirements must be followed.

Discusses interest on late payments to the ATO & what your options are for reduction.

Buying property with friends or family can make home ownership more achievable, but it also creates important legal and financial obligations. Before buying, consider whether to own the property as joint tenants or tenants in common, how each person will contribute to costs, what happens if someone wants to sell or can no longer make payments, and how each owner’s interest will be dealt with if they die or want to sell. A co-ownership agreement can document each owner’s rights and responsibilities and establish a process for managing changes or disputes.

Pastoralists should identify the water and operational assets that matter to the station before activity begins, then ensure any access or commercial agreement clearly deals with monitoring, disruption, rehabilitation, liability and review. The legal position will depend on the mining or exploration licence (as the case may be), the pastoral lease, government policy, approvals and proposed activity, but early preparation gives a family stronger footing in discussions.

From July 2026, about 90,000 more businesses must register with AUSTRAC & meet new AML/CTF compliance, due diligence & reporting obligations.