The Government has proposed changes to the bankruptcy law in the Bankruptcy Amendment (Enterprise Incentives) Bill 2018 (BAEI bill).
The changes are designed to boost commercial behaviour and reduce the stigma associated with bankruptcy.
Key changes include:
- shortening the default bankruptcy period from 3 years to 1 year
- bankrupts to continue to make income contributions for a minimum period of two years following their discharge from bankruptcy
- reducing other time periods associated with bankruptcy to one year such as permission to travel, disclosure of bankrupt status when applying for credit.
STATUS: This Bill is currently before Parliament
Further information regarding this Bill (including its status) can be found at the Parliament of Australia website.