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I am sure you have all heard the various jokes that finish with "You might be a ....".  Well the following statements are nothing to joke about.

If your business can't pay bills as and when they fall due or you have been issued with a demand for payment. You might be insolvent.

If you are nervous answering the phone in case it is someone chasing payment then you might be insolvent.

Insolvency either personal or business is no laughing matter and should not be ignored.  Don't wait until it is too late to do something about it.  What is Liqudiation can help you go over your options.

Take the test and if your think "You might be ..... (you know)" then don't wait, contact us now.

A recent article by Colin Porter, Managing Director of Creditor Watch highlighted comments made in February of this year by the ATO second commissioner Geoff Leeper.  Mr Leeper is quoted as saying he and the commission (Commissioner of Taxation and Registrar of the Australian Business Register, Chris Jordan AO) have had several conversations about the fact that there are currently no credit reference consequences from being in debt to the tax office.  In its latest annual report, the ATO recorded that no less than $17.7bn is currently outstanding in unrecovered tax of which 60% is owed by SMEs.

Especially when there is an Administration and a PPSA claim lurking.

On 25 February 2014 administrators were appointed over Renovation Boys, a company involved in supplying bathroom products.  With a large volume of property spread over several premises and accruing rent and employee entitlements the administrators, with no funds to pay for the necessary work, swiftly put their case before Justice Black on 21 March 2014.  A decision was promptly given on 25 March 2014.  See Renovation Boys Pty Ltd (Administrators Appointed) [2014] NSWSC340.

The Government is set to review the PPSA with the impact on small businesses and their experiences since its implementation as front of mind.

Australia’s close tie to Asia’s growing dominance has seen it emerge from the GFC in a relatively strong economic position. We have been identified as a country that “inspires confidence in the marketplace”, our Government debt as a percentage of GDP rests at 30% - a tiny fraction of the United States and other European countries. In addition our well managed central reserve is not printing money like the rest of the world.  Consequently there has been an influx of foreign capital coming into Australia from Europe, the US and China as global investors search for a ‘safe haven’ post GFC.

A recent article in The Age and Sydney Morning Herald did not fully reflect comments from David Iannuzzi of Veritas Advisory.  To clarify, Veritas Advisory is hoping to sell the current stock on hand to a retailer.  They are also busy looking for a locally based partner to help with a retail strategy.   There is some talks happening at the moment with the frontrunner who flew to the US recently to get an understanding of how best to do business with Breakwater.

After some 22 years of continued growth in our economy, a feeling of disquiet has enveloped the Australian work place as the impacts of a slowing economy become apparent.

In recent months -

  • Qantas has reported a $300 million dollar loss, and the intention to shed 1,000 jobs;
  • Brindabella Airlines has just been placed  in Administration;
  • Ford and Holden have announced the cessation of vehicle manufacturing operations in Australia in 2016 and 2017 respectively.  Toyota may well follow suit;

17 February 2014 — Apparel and fashion accessories maker Bleach Group, also known as Mentmore Group (“Bleach”) today announced that it has secured the future of beloved and iconic Australian premium denim label Ksubi and street/surf brand Insight, through the timely backing of Los Angeles-based private investment firm Breakwater Investment Management, LLC (“Breakwater”), which has historically supported the business.

Click here to read the full media release.

To all those affected by the bush fires in New South Wales, we would like to extend our deepest support to you in these challenging moments. With the Rural Fire Service personnel deployed in large numbers, and with over 80 aircraft – both fixed wing and helicopters in the air, you are in very good hands.  But the task is enormous and we can only hope that luck will be with the RFDs personnel as they continue this extraordinary battle!

With the first half of the financial year over and the New Year commencing, business owners and advisors should use this ‘quiet’ time to ensure their house or client’s backyard is in order.

Leading up to the Christmas break we noticed a spike in recovery actions by the ATO, particularly with regard to Director Penalty Notices (both new and old style demands) as well as Garnishee notices.