ARTICLE · 13 SEPTEMBER 2017

Safe harbour reforms passed, and anti-phoenixing reforms on the way

Clayton Utz

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Directors should get guidance on how safe harbour reforms could affect a business and review long-term supply contracts.

AustraliaInsolvency/Bankruptcy/Re-Structuring

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In a big 24 hours for restructuring and insolvency, the safe harbour reforms were passed by the Senate late last night, and anti-phoenixing reforms were announced this morning.

Safe harbour reforms

The safe harbour laws will commence operation the day after the Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Bill 2017 receives Royal Assent, with the ipso facto provisions set to commence on 1 July 2018 (or earlier by proclamation).

The only amendment to the safe harbour proposed legislation which was accepted provides that there be an independent review to be undertaken after two years of operation of the impact of the availability of the safe harbour on directors of companies, their conduct, and the interests of creditors and employees of those companies.

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