Government says taskforce to align insolvency laws is unnecessary

The Australian Productivity Commission (APC) recommendation that a taskforce  be established to identify personal and corporate insolvency provisions and processes that could be aligned has been formally rejected by the Government.

The APC recommendations were made in its report in October 2010 on the Annual Review of Regulatory Burdens on Business: Business and Consumer Services (the Report). The Government’s formal response to the Report was released by the APC on 13 October 2011 and may be found HERE.

 In response to the APC’s recommendation (number 4.3) for a taskforce, the Government says that it:

” agrees that there should be greater consistency between the personal and corporate insolvency systems. Significant work is already being progressed by relevant government agencies to identify areas for greater harmonisation, and therefore the Government believes that establishing a taskforce is unnecessary and may duplicate work already being undertaken.  The Government will facilitate the closer alignment of the personal and corporate insolvency laws through its options paper, A Modernisation and Harmonisation of the Regulatory Framework Applying to Insolvency Practitioners in Australia, which was released on 2 June 2011.  This paper canvasses options for the registration, regulation and remuneration of participants in the corporate and personal insolvency industries.”