Independent Review – Attorney-General’s Department
On 19 October 2017 the Government introduced the Bankruptcy Amendment (Enterprise Incentives) Bill 2017 to make changes to bankruptcy laws aimed at reducing the stigma of bankruptcy and fostering greater entrepreneurship. The changes were originally announced by the Prime Minister on 7 December 2015 as part of the National Innovation and Science Agenda.
The major change is reduction of the default period of bankruptcy from three years to one year. Other time periods associated with bankruptcy would also be reduced to one year. That includes the time periods for disclosure of bankrupt status when applying for credit, seeking permission for overseas travel and the attainment of certain licences and entering into certain professions. Income contribution obligations for discharged bankrupts would generally extend for a minimum period of two years following discharge.
The Business Set-up, Transfer and Closure Inquiry Report of the Productivity Commission has been certified by the Attorney-General’s Department as meeting the requirements of a regulation impact statement. The OBPR does not assess independent reviews.
The Attorney-General’s Department estimates the average annual regulatory cost saving at $4.1 million. The OBPR has agreed to the regulatory cost saving.
The review report can be accessed on the Productivity Commission website.