Mackay Goodwin

The 21-day Director Penalty Notice (DPN), here we go again! Just a little follow up from my previous post talking about when the 21-day starts. There were a lot of people who shared thoughts on the post and a few more in person. A common trend was to check AustLII. But let's remember who's getting these notices at the end of the day, it's not the lawyers, the tax advisors nor the insolvency practitioners.... it's the business owners, many of whom don't know what a DPN is, let alone what AustLII is. So what should be done about it? On the last page it's dated with the day the notice was issued. What about, if next to that date, there's a simple due date and time? It would sure clear up a lot of confusion!

The Small Business Restructure (SBR) Process has been a game changer for so many small Australian Businesses. Edwin Narayan has just gone through an SBR with an up and coming rapper, much to the pleasure of the analysts. One, because there's finally an excuse to steal the office speak and two, because when the SBR proposal was approved it meant the musician was that much closer to getting back to making music. Now unfortunately, small businesses are feeling the crunch on their hip, and no industry is feeling an exception. So the SBR process can offer a great solution to any eligible business to sort out their debt. . . . . . #business #ato #debt

As a result of the recent headlines about Conor McGregor, this question was raised by one of my team. In Australia, we're no strangers to companies having to distance themselves from public figures after certain instances. Jared Hayne, Don Burke, Israel Folau and Ben Cousins just to name a few. The purpose of this post is to pose the question: What protection is available to Australian business owners who, through no fault of their own, find themselves tied to a public figure whose actions negatively impact the public perception of their business? We’re looking for a reactive measure, not a proactive one. One team member suggested that the director may be able to rely upon Director’s and Officer’s (D&O) Insurance. But for someone to even consider this as an option, it needs to be in place before an incident occurs and can't offer protection as a reactive measure. Can't crash a car and then take out the insurance. So what’s the solution? One possible pathway is Safe Harbour, which provides directors with protection from personal liability for insolvent trading while they work to stabilise the business. I'd like to know your thoughts.... are there other measures available? For my legal friends, are there any precedents? Would love to hear your thoughts in the comments!

Director Penalty's and tax returns, let's talk about them. So often people only know they have a penalty against their name after they send in their tax return and it comes back.... less than favourable. Once a penalty and any interest is applied to it, the day can turn sour real quick. Has anyone else experienced this with their clients? Happy for anyone to put personal stories in the comments but anonymity is encouraged. For the loyal followers of this series, Iced Coffee & Insolvency Season 2 has commenced. How's the new shirt? Still nice and colourful?

Personal Insolvency: is there an alternative to Bankruptcy? Yes, a part 10 agreement. What a part 10 is, is an agreement with your creditors to come to an agreement on how the debt can be paid back on much more manageable terms. For those familiar with Voluntary Administration and the Small Business Restructure process, this is quite a similar option but for personal finances. If you're reading this far and thinking, "Hang on, isn't Bankruptcy for businesses?" in America, yes - but in Australia, no. Bankruptcy in Australia is for personal finances, not for the company. If Gavin King, our AFSA-Registered Bankruptcy Trustee, had a coin for every time he's explained that one!

Are you or your client looking for a business opportunity in payroll services? We're please to present the sale of an established business, operating across Queensland, New South Wales, and Victoria, which specialises in managing payroll for host companies in the security industry. 📧 Interested? Email [email protected] by 13th January 2025 to access an Information Memorandum.

I’m on the hunt for a Graduate to join my team! This isn’t one of those grad jobs where you’ll be stuck fetching coffee or photocopying. What is Mackay Goodwin? We’re an insolvency firm specialising in: ▪️ Small Business Restructure Process (helping businesses turn things around), ▪️ Voluntary Administration (another great tool for business recovery), ▪️ Liquidation (when it’s time for a fresh start). Additionally, we also offer Receivership, Personal Insolvency (headed up by the King @Gavin), Corporate Insolvency, the R&D Tax Incentive (led by the stupidly smart @Saurav), and Safe Harbour arrangements. What’s the role? As an Insolvency Graduate, you’ll get hands-on experience, including: ▪️ Assisting with business turnarounds like Voluntary Administrations and Small Business Restructures. ▪️ Recovering company assets and investigating financials ▪️ Collaborating with directors, creditors, the ATO, and even ASIC to solve complex business challenges. If this sounds like you—or if you know someone who’d be a perfect fit—get in touch!

I love the Small Business Restructure (SBR) process. But, it sucks when a business just doesn't meet the criteria for a Small Business Restructure (SBR), because it can make one hell of a difference to a business dealings with debt. Every time one of our team chat to a business we look to see if an SBR can work and quite often we find that they just fall outside this criteria. So I've heard rumours that the ATO may be looking at increasing this piece of the criteria to $2 million. But this is just "here-say" at the moment so don't take my word as gospel.

The Mackay Goodwinners were out on the field once more today! Today, we welcomed two new additions to the team, Jamie and Brad, who came in as a result of the mid-season trade period. Hopefully, they weren't scared off by the 30-degree day today and will join us next week 🙌 Now unfortunately, the team's number #1 cheer squad member was busy for today's game. But please still enjoy a photo of Bickie from the previous week.

Director Penalty Notices (DPNs) sure are tricky things. One common misconception I've noticed, is that business owners think they are only personally liable for debt if they receive a DPN. Nope. As soon as a business does not lodge its BASs within the non-lockdown period, the director/s are on the hook for that debt. If you have a business tax debt, private lenders are definitely worth looking into to avoid personal liability. I've spoken with many lenders, and none of them are strangers to dealing with businesses in distressed situations. They know what you're going through and can accommodate. ⁉️ "But Marcus, what about loan sharks?" ⁉️ Business loan brokers are an incredible resource, and the internet is pretty good these days to figure out if they're legit. But if you think someone smells a little 'sharky', I'm more than happy to have a quick review. For my loyal following of this series, I may be changing my shirt next week.