News & Updates

• The Dangers of Lending to Loved Ones 02-03-2020

  Given the costs associated with the acquisition of real estate in the current market, it is becoming common for parents to advance funds (unsecured) to their children in order to assist them in buying their first home.  The funds advanced usually form part of, or all of the deposit for the property, which assists their children obtaining finance to purchase the property. Read More

• Impending Changes to the DPN and PPSR Update 30-09-2019

  Readers will recall that our June 2019 Newsletter discussed the recent changes to the Director Penalty Notice (“DPN”) Regime in respect to superannuation. Read More

• Recent criminal changes to the Director Penalty Notice Regime 26-06-2019

  The Director Penalty Notice (“DPN”) regime has been around for many years whereby the corporate veil can be lifted, and the directors of an organisation held personally liable for certain obligations to the Australian Taxation Office (“ATO”).  For the most part, this meant PAYG Withholdings.  In more recent times, obligations for superannuation have been included in the DPN regime.   Read More

• Gaol Time for Delinquent Company Directors / PPSR Update 02-04-2019

  There have been a number of cases determined in the last 6 months regarding the conduct of company directors, which has ultimately resulted in those parties receiving custodial sentences.  In each of the scenarios, the investigations of the Australian Taxation Office (“ATO”) have found that the directors engaged in activity to falsely claim refunds for GST, and / or, failed to report and remit the GST and PAYG Withholdings to the ATO.  Read More

• When is a Guarantee Not a Guarantee? 28-11-2018

  A debtor who gives a guarantee, then becomes a bankrupt (or subject to a Part X Arrangement) can avoid their obligations under the guarantee post bankruptcy if they take certain steps.  If they fail to take those steps, the debtor may face liability pursuant to the guarantee for goods and services provided after the date of the bankruptcy, ie the guarantee is still on foot. Read More

• Illegal Phoenix Operations & Determining Right to Income 22-02-2018

  Phoenix companies “rise from the ashes” with a new corporate structure that derives its assets (usually without providing adequate compensation for same), and director(s) from an old entity, leaving behind the debts of the old entity and giving the new entity a “clean slate”. Read More

• New & Proposed Legislative Changes Mike Smith 14-11-2017

  Effective 19 September 2017, the Federal Government introduced changes to the Corporations Act, 2001 (Cth) (“the Act”) (Section 588GA) which are commonly referred to as the “Safe Harbour Reforms”.  The reforms apply to courses of action taken before, at, or after that date and to debts incurred on or after that date. Read More

• Voidable Property Transfer & Director Liability 03-08-2017

  A Federal Circuit Court decision highlights the attitude that the judiciary takes towards transfers of property that are perceived as being intended to frustrate or evade legitimate creditors, even many years down the track. Read More

• Welcome to New Partner and Reforms to Insolvency Law Mike Smith 01-05-2017

  We are delighted to announce the appointment of Robert Kite as a Partner of Smith Hancock. This exciting appointment realises our long-term objective to be a full service insolvency firm, as we now have the ability to accept formal and informal personal bankruptcy appointments. Read More

• ASIC Statistics and Enforcement 08-02-2017

  It’s the start of another calendar year, so how are Australian businesses faring? Here is a review of the latest statistics and observations made by the Australian Securities and Investments Commission ("ASIC") following review of statutory reports lodged by liquidators, receivers and voluntary administrators for the year ending 30 June 2016.  Read More