Insolvency Law Reform Bill 2015 passes the House

Yesterday the Insolvency Law Reform Bill (ILRB) 2015 was passed by the House of Representatives, marking a significant point of progress.

The Bill will now head to the Senate where it has already been resolved that it will not go to a Committee, speeding its likely passage.

We believe the commencement date of the law will not be until 1 July 2017.

It was disappointing that a lot of the debate from Government MPs involved negative comments about the profession.

It has to be noted that the Opposition speakers were more supportive. The Shadow Minister for Financial Services, Dr Jim Chalmers, acknowledged “the very balanced contribution from … ARITA”.

There is still little indication as to the content or likely date of availability of the all-important Insolvency Practice Rules (IPRs).

Once we have a better insight into the IPRs, we will develop comprehensive training packages and roadshow forums to explain the changes to members. Without the IPRs we are limited in what can be delivered.

But we have collated detailed information and analysis  for members on what we know so far.

The Government has already announced its intention to support ARITA’s proposals for safe harbour and ipso facto reforms in its recent Innovation Statement. We are currently working with government on the remainder of the Productivity Commission’s recommendations of ARITA’s other proposed reforms.

These are essential enhancements to the regime. ARITA has informed Treasury and senior politicians that we will be forming a working group of specialists and representatives from other interest groups to offer an initial drafting of the required legislation to enable these changes.

More information and analysis on the ILRB 2015