Insolvency Myth #1 – The ATO get priority for tax
debts
This is one which we still hear quite often, despite the
Australian Taxation Office's (ATO) priority ceasing in 1993!
Since then all debts due to the ATO rank equally with other
unsecured creditors.
The only claim for which the ATO has a priority is in respect of
unpaid superannuation guarantee charge.
Insolvency Myth #2 – Insolvency practitioners
always get paid first
Contrary to what some believe, insolvency practitioners
don't always get paid first, and often we don't get paid at
all!
In court liquidations and bankruptcies, petitioning
creditor's costs rank ahead of most other claims including an
insolvency practitioner's remuneration. The extent of secured
creditors in an administration will also have a bearing on the
funds available to meet remuneration.
