In January 2021, the Australian Government undertook public consultation on possible changes to the bankruptcy system. The consultation was undertaken to inform the Government’s response to address the impacts of the COVID-19 pandemic.
Following a review of the submissions that were received as part of that consultation process, the Government is now considering opportunities to reform the Bankruptcy Act 1966.
These opportunities include:
- reducing bankruptcy to one year
- promoting debt agreements
- targeting untrustworthy advisors.
Key stakeholders are invited to provide feedback on these reform opportunities via the Attorney-General Department’s website by 25 February 2022. Please note that the consultation process is being undertaken by the Attorney-General’s Department and not by the Australian Financial Security Authority (AFSA).
The consultation includes a survey and stakeholders also have the option of uploading written submissions.
More information can be found by visiting the Attorney-General Department’s website, or by emailing bankruptcy [at] ag.gov.au.