On 23 August 2016 the Minister for Revenue and Financial Services announced that the commencement of a portion of the Insolvency Law Reform Act will be delayed until 1 September 2017
The delay comes off the back of the lengthy government caretaker period during the federal election, which halted all work on the Insolvency Practice Rules. The Rules are not likely to be formalised till December 2016.
The purpose for this partial delay is to provide industry members with enough time to become compliant with the Act by the scheduled commencement date, including adjusting their IT systems and/or completing necessary staff retraining.
Commencing 1 March 2017 as originally planned
- Part 1 of the two new Insolvency Practice Schedules (for Corporations and Bankruptcy).
- Part 2 of the two new Insolvency Practice Schedules (for Corporations and Bankruptcy).
- Parts of Schedule 3 of the Act – including specific provisions such as dealing with termination of a DOCA and the relation back day.
Commencing 1 September 2017
- Part 3 of the new Insolvency Practice Schedules which relates to the general rules for the conduct of external administrations and bankruptcies.