Joint AICD BCA submission to the Insolvency Safe Harbour Review

The Safe Harbour has directly resulted in economic benefits through preserving employment, owner equity, providing greater returns to creditors and maintaining tax receipts. It has had broader economic benefits by helping to create a culture in which business preservation is encouraged and has enabled viable businesses to be saved which, without the option of Safe Harbour, would have been needlessly shut down.

The submission also makes the case that the success of the Safe Harbour demonstrates the potential for further reform of Australia’s insolvency laws and the benefits that can result from appropriately reducing the threat of personal liability faced by directors.