For many Australian directors, corporate insolvency doesn’t happen overnight. It builds quietly through missed payments, strained conversations, and mounting pressure that is easy to rationalise away. Understanding the early warning signs is critical, not only to protect the business, but to protect you personally from insolvent trading exposure.

This guide is designed for company directors, business owners, and CFOs who are feeling the pressure and want clear, practical insight. It focuses on action and explains when to seek corporate insolvency services that may help stabilise the situation before formal liquidation becomes unavoidable. Why Early Action Matters for Directors

In addition to insolvency services, our firms undertakes litigation support and forensic accounting services, through our division OIS Forensics.

Recently, a judgment was delivered in a matter in which we were instructed to provide such forensic accounting services for the benefit of the Court: Adelaide (SA) Pools & Spa Manufacturing and Installation Pty Ltd v Westcourt General Insurance Brokers Pty Ltd (No 2) [2021] SASC 123.

The Corporations Act (the “Act”) has been amended to create a new avenue of recovery for Liquidators.

Section 588FDB sets out the new recovery tool, being a voidable “creditor-defeating disposition”.

There are numerous occasions where alleged offenders under Bankruptcy Act 1966 (Cth) (the “Act”) can be referred to the Commonwealth Director of Public Prosecutions (“CDPP”).

There have been a number of recent cases where this has occurred for various breaches of the Act.  Bankruptcy Trustees are assigned the duty to report such offences under s. 19 of the Act, playing an important role in supporting the integrity of Australia’s personal insolvency system. 

Major changes in superannuation policies have taken effect this 2021, including a very recent development concerning employees who change jobs.

If you are unaware or not updated, here is a recap of the major changes affecting superannuation:

In recent parliamentary debate, the Federal Government has been considering whether the National Consumer Protection Act 2009 (the “Act”) is no longer fit for purpose.

Earlier this year, the Government had proposed the scrapping of responsible lending obligations under the Act with the aim to simplify Australia’s credit network, ensuring that consumers and small businesses can access timely credit as the economy recovers from the economic fallout caused by COVID-19.

Recently, the Australian Taxation Office (ATO) issued Taxpayer Alert TA 2021/2.  This alert addresses Australian taxpayers who are trying to avoid paying taxes on their foreign assessable income.  Instead of being honest about this income, some Australian taxpayers are trying to disguise funds they received from overseas as a gift or a loan from a related overseas entity.

The ATO is also concerned about certain Australian taxpayers who are using such loans to claim deductions for interest that was never incurred.

Debts that are not caught by bankruptcy – a quick guide

“Bankruptcy” used to be a punishment for those who could not pay their debts.  In Medieval Europe, individuals who could not pay their debts were imprisoned and had to work off their debts with hard labour.