The Full Federal Court has held that a bankrupt taxpayer had no standing to seek review of an objection decision as she was not a person “dissatisfied” within the meaning of s 14ZZ of the Taxation Administration Act 1953.

As 2021 draws to a close, we look back at the key developments and cases in Bankruptcy & Insolvency, in what has been another very challenging year for businesses. Thank you for being part of our news service as we continued to navigate the changes brought about by COVID-19.

We have provided a snapshot below of the major developments for 2021 and analysed how the pandemic has impacted business which are struggling financially. We also provide a prediction of the key issues which are likely to prevail in 2022.

A couple who were undischarged bankrupts have not been successful in seeking an exemption under the bankruptcy law to exclude certain assets from being divisible amongst the creditors of their bankrupt estates. Particularly, the exemption sought required that their interests in the disputed assets (cash, shares and residential properties) be held by way of interests in their self-managed superannuation fund (SMSF).

A de facto wife has been unsuccessful in an appeal against a declaration that a binding financial agreement covered all the property of the parties.

The de facto wife became bankrupt after filing the appeal and her trustee in bankruptcy did not wish to pursue the appeal. The court considered that any property that the de facto wife would be entitled to in property settlement would vest in her trustee in bankruptcy.

The court found the de facto wife did not have sufficient interest in the order which was the subject of the appeal in order to give her standing.

It is now over 6 years since the Full Federal Court handed down its decision in the appeal case of Di Cioccio v Official Trustee in Bankruptcy (as Trustee of the Bankrupt Estate of Di Cioccio) [2015] FCAFC 30 (Cioccio). The Australian Financial Security Authority recently revisited the Cioccio decision in light of a number of subsequent decisions.

The following company law cases have been reported in CCH Pinpoint:

Directors’ duties: director breaches multiple duties by causing companies to provide security for unrelated parties

On 2 August 2021, Treasury released a consultation paper on proposed reforms to improve creditors’ schemes of arrangement in Australia. The proposed reforms are intended to complement the simplified liquidation and debt restructuring process introduced for small businesses on 1 January 2021, as a result of the COVID-19 pandemic.

What is a scheme of arrangement?

One of the key questions for an individual facing bankruptcy is how they can protect their assets from the trustee-in-bankruptcy (trustee) or from creditors. This is particularly relevant for the family/matrimonial home. One of the ways of protecting this asset is via the presumption of advancement.

This article explores a recent appeal case where the presumption of advancement, in relation to the family home, was rebutted.

What is the presumption of advancement?

A recent case handed down in the Supreme Court of New South Wales, Re Western Port Holdings Pty Ltd (rec and mgr apptd) (in liq) (2021) 39 ACLC ¶21-016; [2021] NSWSC 232, concerned the recoverability of payments as unfair preferences pursuant to Pt

An appeal against a decision to summarily dismiss the appellant’s application to have consent orders set aside has been allowed, after the Full Court found that the appellant was no longer a person affected by the consent orders.