What has happened to date? 
 
2 June 2010: The Corporations Amendment (Sons of Gwalia) Bill 2010 was introduced into Federal Parliament. 
 
23 April 2010: The Federal Government released draft legislation to reverse the Sons of Gwalia decision, which had allowed shareholder claimants to rank as creditors alongside ordinary unsecured creditors in corporate insolvencies. Submissions were called for by 18 May 2010. 
 
19 January 2010: The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP, announced a package of reforms to Australia's corporate insolvency laws. The reform package included the adoption of substantially all of the recommendations made by CAMAC in its Issues in external administration report, as well as an amendment to the Corporations Act to reverse the effect of the High Court's decision in Sons of Gwalia.  
 
19 January 2010: The Federal Government released a discussion paper on the operation of Australia's insolvent trading laws in the context of attempts at business rescue outside of external administration. Submissions were called for by 2 March 2010. 
 
28 October 2009: The Bankruptcy Legislation Amendment Bill 2009 was introduced into Federal Parliament.  
 
25 August 2009: An exposure draft of the Bankruptcy Legislation Amendment Bill 2009 was released for public consultation. The Bill introduced the trustee remuneration changes announced in October 2008. It also proposed to strengthen penalties, particularly those involving fraud, and to increase various thresholds applicable to personal bankruptcies. 
 
12 August 2009: The Institute lodged its submission with Treasury on the Exposure Draft legislation and Explanatory Memorandum on GST and representatives of incapacitated entities. 
 
13 July 2009: Draft legislation was released for consultation addressing the effect of the Federal Court decision in Deputy Commissioner of Taxation v PM Developments Pty Ltd [2008]. The court had found that the GST liability for transactions occurring during the period of a liquidator's appointment was the liability of the company in liquidation and not the liquidator.  
 
29 January 2009: The Corporations and Markets Advisory Committee (CAMAC) published its report Claims by shareholders against insolvent companies: implications of the Sons of Gwalia decision. The Sons of Gwalia decision reinterpreted a longstanding provision of the law, making it easier for shareholders to recover funds in insolvency proceedings where they were misled in the lead-up to a corporate collapse. The report recommended that the current law, as reflected in the High Court’s decision, be retained.  
 
11 December 2008: The Corporations and Markets Advisory Committee (CAMAC) published its report Issues in External Administration. The report covered a broad range of matters dealing with corporate insolvency administration. These included recommendations aimed at improving stakeholders' access to information, approval of practitioner remuneration, ASIC powers, streamlining insolvency processes, and using opportunities presented by modern information technology. 
 
30 October 2008: Attorney-General Robert McClelland announced that the Rudd Government will reform the mechanism for trustee remuneration in bankruptcy matters. The necessary amendments to the Bankruptcy Act were intended to be introduced in early 2009. 
 
26 June 2008: ASIC released Regulatory Guide 194 Insurance requirements for registered liquidators (RG 194). 
 
26 June 2008: The Corporations and Markets Advisory Committee (CAMAC) released a discussion paper on Members’ schemes of arrangement. The paper dealt primarily with schemes for shareholders rather than creditors. However, submissions were invited on the general question of the extent to which creditors’ schemes for solvent or insolvent companies still perform a useful function, and on possible changes to facilitate or better regulate these schemes. Submissions were called for by Friday 26 September 2008. 
 
12 June 2008: The Corporations and Markets Advisory Committee (CAMAC) published its report Long–tail liabilities: the treatment of unascertained future personal injury claims. The report made a series of recommendations, including in relation to voluntary administrations, schemes of arrangement and liquidations. 
 
26 May 2008: The Cross-Border Insolvency Act 2008 received Royal Assent. The Act became effective on the Proclamation date of 1 July 2008.  
 
13 February 2008: The Minister for Superannuation and Corporate Law, Senator Nick Sherry, introduced the Cross-Border Insolvency Bill 2008 into Parliament.  
 
7 February 2008: The Corporations and Markets Advisory Committee (CAMAC) released a discussion paper on Issues in external administration. The paper responded to a request from the Federal Government to advise on various matters, raised during public consultation on amendments to the insolvency provisions of the Corporations Act in 2007, that were considered to require further review. Submissions were called for by Friday 16 May 2008.  
 
17 October 2007: The Cross-Border Insolvency Bill 2007 lapsed when Federal Parliament was prorogued for the purpose of a general election. 
 
20 September 2007: The Cross-Border Insolvency Bill 2007 was introduced in the House of Representatives.  
 
20 August 2007: The Corporations Amendment (Insolvency) Act 2007 received Royal Assent. The majority of the Act became effective immediately, with the remaining provisions becoming effective on the Proclamation date of 31 December 2007. 
 
31 May 2007: The Corporations Amendment (Insolvency) Bill 2007 was introduced into Federal Parliament. 
 
3 May 2007: The Department of the Prime Minister and Cabinet's website indicated that the Corporations (Insolvency) Amendment Bill and the Cross Border Insolvency Bill were proposed for introduction into Federal Parliament in the 2007 Winter sittings (8 May to 21 June 2007). 
 
15 April 2007: The Bankruptcy Legislation Amendment (Superannuation Contributions) Act 2007 received Royal Assent. 
 
29 March 2007: The Parliamentary Joint Committee on Corporations and Financial Services issued their Report on their inquiry into the exposure draft of the Corporations Amendment (Insolvency) Bill 2007 and related draft regulations. 
 
2 March 2007: The Institute lodged a joint submission, together with CPA Australia, to the Parliamentary Joint Committee on Corporations and Financial Services, on their inquiry into the exposure draft of the Corporations Amendment (Insolvency) Bill 2007 and related draft regulations. 
 
23 February 2007: The Institute lodged a joint submission to Treasury, together with CPA Australia and the NIA, on the draft Corporations Amendment (Insolvency) Bill 2007 and accompanying draft regulations. 
 
19 January 2007: The Institute lodged a submission to the Senate Standing Committee on Legal and Constitutional Affairs, on their inquiry into the Bankruptcy Legislation Amendment (Superannuation Contributions) Bill 2006. 
 
6 December 2006: The Bankruptcy Legislation Amendment (Superannuation Contributions) Bill 2006 was introduced in Parliament. This Bill amends the Bankruptcy Act 1966 to allow bankruptcy trustees to recover superannuation contributions made prior to bankruptcy with the intention to defeat creditors. These amendments were originally announced by the Attorney-General on 27 July 2006. 
 
13 November 2006: The Parliamentary Secretary to the Treasurer, the Hon Chris Pearce MP, released the draft Corporations Amendment (Insolvency) Bill 2007 and accompanying draft regulations for public exposure, with comments closing on 23 February 2007. The exposure draft of the Corporations Amendment (Insolvency) Bill 2007 includes a range of measures intended to modernise Australia's insolvency laws. The draft Bill and regulations implement the package of insolvency reforms announced by Mr Pearce on 12 October 2005.  
 
27 July 2006: The Attorney-General announced that the Bankruptcy Act 1966 will be amended to allow bankruptcy trustees to recover superannuation contributions made prior to bankruptcy with the intention to defeat creditors. These amendments will address problems highlighted following the High Court's decision in Cook v Benson (June 2003). The Government has decided not to proceed with earlier proposals which would have also allowed for recovery of 'excessive' superannuation contributions made prior to bankruptcy. 
 
30 March 2006: Federal Parliament passed the Bankruptcy Legislation Amendment (Anti-Avoidance) Act 2006 (the former 2005 Bill), to toughen existing laws dealing with the power of the bankruptcy trustee to recover property disposed of prior to bankruptcy or owned by a third person but acquired by that person using the bankrupt's resources. 
 
20 February 2006: The Parliamentary Secretary to the Treasurer, the Hon Chris Pearce MP, announced the establishment of the Insolvency Law Advisory Group, which included a representative from the Institute. The Group had been established to provide technical advice on the accuracy and appropriateness of draft legislation implementing the package of reforms announced on 12 October 2005. 
 
7 December 2005: The Bankruptcy Legislation Amendment (Anti-Avoidance) Bill 2005 was introduced into Parliament. 
 
12 October 2005: The Hon Chris Pearce, Parliamentary Secretary to the Treasurer, released details of a package of reforms to improve the operation of Australia's insolvency laws. It was anticipated that draft legislation would be circulated for public comment in 2006. 
 
23 July 2004: Attorney-General, The Hon Philip Ruddock MP, announced the government had decided to withdraw and revise its exposure draft Bankruptcy Legislation amendment (Anti-Avoidance and Other Measures) Bill. The House of Representatives Standing Committee on Legal and Constitutional Affairs tabled its report on the inquiry into the exposure draft of the Bankruptcy Legislation Amendment (Anti-Avoidance and Other Measures) Bill 2004. 
 
16 July 2004: The House of Representatives Standing Committee on Legal and Constitutional Affairs was due to report its findings to parliament on its inquiry into the exposure draft of the Bankruptcy Legislation Amendment (Anti-Avoidance and Other Measures) Bill 2004. The Institute was advised that the findings would be delayed. 
 
5 July 2004: In an appearance before the House of Representatives Standing Committee on Legal and Constitutional Affairs, the Institute continued to voice its concerns regarding the Bankruptcy Legislation Amendment Bill. 
 
18 June 2004: As part of its continuing lobbying campaign, the Institute made a submission to the House of Representatives Standing Committee on Legal and Constitutional Affairs outlining its support for the intent of the proposed Bankruptcy Legislation Amendment (Anti-Avoidance), however raised concerns that such a fundamental shift in policy may have unintended consequences for people who in no way were attempting to avoid their tax obligations. 
 
21 May 2004: The Chairman of the House of Representatives Standing Committee on Legal and Constitutional Affairs, Bronwyn Bishop, released a media statement announcing the committee would examine proposed changes to bankruptcy laws. Submissions were invited on or before 18 June 2004, with the committee due to report to parliament by 16 July 2004. 
 
14 May 2004: The government released an exposure draft of proposed amendments to the Bankruptcy Act. The amendments would make disposition orders retrospective with no carry back time limit, and reverse the onus of proof by incorporating the concept of a rebuttable presumption.  
 
16 April 2004: In the absence of the release of any draft legislation following a December 2003 announcement proposing changes to the Bankruptcy Act, the Institute met with the adviser to the Attorney-General to express our concerns. These concerns were reported to the May Institute Board meeting, and communicated to Chartered Accountants in the May Institute Board Update. 
 
16 December 2003: The Attorney-General Philip Ruddock announced proposed changes to the Bankruptcy Act targeting high income earners who try to use bankruptcy to avoid paying tax and other debts. 
 
January 2002: The Institute and CPAA lodged a joint submission on the Joint Taskforce on the use of Bankruptcy and Family Law schemes to avoid payment of tax findings, supporting the initiative in principle, but raising concerns about unintended consequences potentially passed on to people who were in no way attempting to avoid their tax obligations. 
 
22 March 2001: The Attorney-General, the Hon Daryl Williams AM QC MP, and Assistant Treasurer, Senator the Hon Rod Kemp, announced the establishment of an inter-agency Taskforce to consider whether any changes should be made to bankruptcy and taxation laws to ensure bankruptcy is not used as a means to avoid tax obligations.  
 
This came about after the ATO uncovered that the conduct of some lawyers took advantage of bankruptcy laws to avoid paying their taxes. A small but significant number of high-income tax debtors – typically high earning fee-for-service professionals – were found to have used bankruptcy to avoid paying the tax that they owe according to the law. These debtors have the ability to pay their debts, but instead fund a lifestyle made possible only through the non-payment of tax and the build up of assets in the names of related parties. 
 
The Joint Taskforce on the use of Bankruptcy and Family Law schemes to avoid payment of tax consisted of officers from the Attorney-General’s Department, Insolvency and Trustee Service Australia, the Australian Taxation Office and the Treasury. The Taskforce made a number of recommendations for amendments to the Bankruptcy Act 1966 and the Family Law Act 1975 and in particular to the interaction of the two pieces of legislation.