The Government has implemented significant temporary measures to ensure that our insolvency laws and processes do not expose companies and individuals to undue risk. This will hopefully avoid a potentially unprecedented wave of insolvencies.

Key takeouts

The Government announced a six month suspension of insolvent trading laws.

The relevant debts will still be due and payable by the company in the normal way.

Egregious cases of dishonesty and fraud will still be subject to criminal penalties.

On 28 March 2017, the Australian Government announced its proposals to reform the law relating to insolvent trading, and the right to terminate contracts based on insolvency ('ipso facto clauses').