Treasury Law Amendment (Combating Illegal Phoenixing) Bill 2019
The submission to the Senate Standing Committee on Economics' inquiry in relation to the Treasury Law Amendment (Combating Illegal Phoenixing) Bill 2019 was prepared by the Insolvency and Reconstruction Committee of the Business Law Section.
The proposed amendments are a significant step in advancing the Government’s policy to address community and business concerns about the incidence of improper phoenix activity and will seek to reduce its harmful effects on the economy.
The Insolvency and Reconstruction Committee has long advocated a need to increase regulation of pre-insolvency advisors and these amendments are a step in the right direction to tackle the complex problems posed by phoenix activity. The Law Council previously made a submission dated 3 October 2018 to Treasury in connection with the consultation which occurred in connection with the exposure draft of the Bill.
It is pleasing that it appears that some of the Law Council’s suggested improvements to the Bill have been taken up in the final bill introduced to Parliament. Although the Insolvency and Reconstruction Committee broadly supports the move to increase regulation of improper phoenix activity, several concerns remain about the wording of the proposed provisions.
You can read the full submission below.