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ARTICLE · 30 AUGUST 2018

An update on ipso facto law reform

Holding Redlich
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Late last year we summarised the impacts the safe harbour and ipso facto law reform, brought about by the Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Act 2017 (Cth) (Act), would have on insolvency laws (see here). The Act introduced a stay on the enforcement of ipso facto clauses in construction and other commercial contracts, effective 1 July 2018. As part of the reform the Regulations1 were passed on 1 July 2018, recognising scenarios where staying the operation of ipso facto clauses is unnecessary or undesirable.

This article provides an overview of the exclusions to the stay on ipso facto clauses under these newly introduced provisions.

The stay on ipso facto clauses

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