The Morrison Government will undertake the most significant reforms to Australia’s insolvency framework in 30 years as part of our economic recovery plan to keep businesses in business and Australians in jobs.

The reforms, which draw on key features from Chapter 11 of the Bankruptcy Code in the United States, will help more small businesses restructure and survive the economic impact of COVID-19.

Federal Member for Bonner Ross Vasta MP said the reforms would give more support to the region’s businesses that had been hit hard by the coronavirus.

“The Morrison Government is standing by small and family businesses and doing all we can to help make sure these businesses come out on the other side of this crisis,” Mr Vasta said.

“Along with early access to super, cash-flow boosts and JobKeeper, we are doing everything we can to keep family businesses up and running.”

As the economy continues to recover, it will be critical that distressed businesses have the necessary flexibility to either restructure or to wind down their operations in an orderly manner.

The reforms will assist incorporated businesses with less than $1 million in liabilities covering around 76 per cent of Australian businesses subject to insolvencies today, 98 per cent of which have less than 20 employees.

Together, these measures will reposition our insolvency system to reduce costs for small businesses, reduce the time they spend during the insolvency process, ensure greater economic dynamism, and ultimately help more local businesses get to the other side of the crisis.

Earlier this year the Morrison Government announced temporary regulatory measures to help financially distressed businesses get to the other side of COVID-19. On 7 September 2020 the Government announced a further extension of this relief to 31 December 2020.

The new processes will be available for small businesses from 1 January 2021.

Queensland school leavers and job seekers will benefit from increased access to free or low-fee skills training under a significant investment through the JobTrainer Agreement to be rolled out across Queensland.

Minister for Employment, Skills, Small and Family Business Senator the Hon Michaelia Cash said strengthening Australia’s skills and training system was a priority as the nation responded to COVID-19.

The $1 billion JobTrainer program will provide up to an additional 340,700 training places across the country for school leavers and help upskill and retrain jobseekers in areas of demand.

“JobTrainer is central to Australia’s recovery from COVID-19. It will provide Australians with new opportunities and skills to get a job” Minister Cash said.

“It is a significant joint investment by the Commonwealth and State and Territory Governments.”

The Queensland agreement will inject an extra $201 million into the state’s vocational education and training sector.

The Australian Government will contribute $100.5 million, which will be matched dollar-for-dollar by the Queensland Government.

Federal Member for Bonner Ross Vasta MP said this was a fantastic result for Queensland which would greatly assist job seekers and young people, especially school leavers.

“The JobTrainer Fund will help lift Queensland as the state recovers from COVID-19,” Mr Vasta said.

“I have spoken to a lot of young people concerned about what the future holds and to provide more skills training opportunity will provide some certainty and confidence our economy will get back on track and there will be jobs for young people.”

Minister Cash said JobTrainer was part of the Australian Government’s $6.5 billion investment in Vocational Education and Training in 2020-21.

“As part of this investment the Commonwealth is also providing additional support with the Supporting Apprentices and Trainees (SAT) wage subsidy, which has provided more than $500 million to employers across Australia since April this year.

“As part of the SAT the Government has invested $102.89 million to assist 10,461 employers to retain 17,290 apprentices and trainees in Queensland.”

For more information about JobTrainer visit: https://www.dese.gov.au/jobtrainer-fund.