The proposal by the Bankruptcy Amendment (Enterprise Incentives) Bill 2017 was to encourage greater entrepreneurial action by reducing the heavy penalties under the current regime. Under the current regime the bankruptcy period is 3 years.  Under the proposed amendments the bankruptcy period would be reduced to one year.
By reducing the Bankruptcy period to one year, it will help to encourage innovation and entrepreneurship through bold business decisions in line with the National Innovation and Science Agenda (NISA).

If the proposed bill is passed after completing one year in bankruptcy, you will be free to:

• travel overseas without restrictions;
• apply for credit again;
• become a company director again; and
• hold certain licenses (e.g. real estate licenses or licenced builder).

Given the bill was introduced into parliament in October 2017 and it hasn’t been passed as yet, we feel that the chances of the bill passing without significant amendments are significantly reduced at this point in time.

As soon as the government votes on the Bankruptcy Amendment (Enterprise Incentives) Bill 2017, we shall publish another article updating you.  Please visit our website for fresh updates in the matter.