Submission: Clarifying the treatment of trusts under insolvency law
Today Treasury opened consultation on clarifying the treatment of trusts under insolvency law. This follows from the Government's earlier announcement to consult on the administration of insolvent trusts and improvements to schemes.
The Government is seeking stakeholder views on whether the treatment of corporate trusts in Australia’s insolvency law needs to be clarified. Input is also sought on the benefits this could deliver and how any new framework might operate.
ARITA has been voicing its concerns about the interaction of trusts and insolvency law for many years, most recently during the consultation on the small business insolvency reforms. We welcome the chance to consult on this fundamental issue and will be making a submission.
Submissions close on 10 December 2021.