Jones Partner


Professional Scepticism and Insolvency? More is needed for better outcomes for creditors.

07/10/2014 by Bruce Gleeson

Professional scepticism is typically raised by ASIC and bodies in the context of auditors. In short, it is used in the context that auditors should “challenge” key assumptions or seek out further evidence, rather than over relying on explanations from management. Indeed it was raised recently by ASIC in its latest findings from inspections of audit firms. I would argue that the same concept holds for Insolvency Practitioners, be it in either corporate or personal insolvencies. Whether the cause of the financial position or the transaction(s) be deliberate, reckless or more along the lines of an error of judgement, it is important for the Insolvency Practitioner to sufficiently test the cl

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Are You Money Smart?

29/08/2014 by Bruce Gleeson

Understanding money and finances in order to make informed and effective financial decisions is an essential skill in today’s world. I regularly see in the field of insolvency and business recovery the adverse impacts of excessive spending and not having plans and budgets in place. Simply it can lead to financial difficulty if left unchecked. Financial literacy is something that is much talked about, yet not well embraced in many SMEs and family households – this is despite all of the technology and other platforms to assist us! Money Smart week runs from 1 – 7 September inclusive. More information about it can be obtained from the links below. Check out the “credit quiz” and “b

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ATO Debt Collection Process under review

05/06/2014 by Bruce Gleeson

On 26 May 2014, a review into the ATO’s approach to debt collection was announced by the Inspector General of Taxation, Mr Ali Nozoori. It was noted that over the last 10 years that the ATO has reported an increase in total collectible debt. In 2012/13 the total amount of this was about $17.7 billion and importantly over 60% was owed by small business. This supports what I frequently see, whereby the ATO is quite often the largest creditor in small company insolvencies. Attached is an audio link of an interview between Ross Greenwood from 2GB and the Inspector General Ali Nozoori. www.2gb.com/audioplayer/46351   . . .

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Employees and Unpaid Superannuation – Millions Lost

29/05/2014 by Bruce Gleeson

We know from ASIC’s statistics released that of companies placed into liquidation: Approximately 85% have assets less than $100,000; and In about 97% of liquidations (for the year 2012/2013) a dividend of less than 11 cents in the dollar was paid. The fact that many company liquidations have very few assets and the dividend rate is so low is not overly surprising. It should also be remembered that approximately 80% of liquidations involve less than 20 employees. In this sense the dominate source of corporate insolvency relates to small incorporated businesses. It is significant to note that small businesses employ almost half of the total industry workers. Therefore, when these sma

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Beneath the Insolvency Statistics

by Bruce Gleeson

Whilst the headline statistics released by ASIC [for corporate insolvencies] and AFSA [for personal insolvencies] always make interesting reading and helps us understand correlations between the national / state economies and insolvency levels, looking beneath these statistics also reveals critical details about the most frequently used type of corporate insolvency administration, as well as the most commonly used personal insolvency option. Corporate Insolvencies So why have CVL’s been the tool of choice since late 2007: VA’s were first introduced in June 1993. At this time the Australian Taxation Office (“ATO”) introduced the Director Penalty Notice (“DPN”) regime. At th

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Insolvent Builders & Home Warranty Insurance (“HWI”)

20/03/2014 by Bruce Gleeson

For many individuals or couples one of the biggest purchases in their lives will be the construction of a new home. Unfortunately over the years there have been many residential home builders that have gone into some form of insolvency administration and ceased to trade, leaving home owners with an incomplete home and lots of worries. We are frequently appointed as Voluntary Administrators or Liquidators to residential home builders where they are insolvent. In one recent matter, there has been an instance where the HWI policies were not adequate to cover all costs incurred in completing the homes. We highlight in this article some important considerations customers should give if such an

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Insolvency and Bankruptcy Numbers – Not What You Might Expect!

by Bruce Gleeson

Welcome to our first Newsletter for 2014. A subject we are frequently asked about is what are the insolvency and bankruptcy statistics doing and what inferences can be gleaned from them. During the course of the calendar year we will be providing a regular commentary on movements. Set out in this article are graphs for NSW and Australia for corporate insolvencies and personal bankruptcies / personal insolvency agreements (“PIAs”) during the period 2010 to 2013 inclusive. Some key observations are: Corporate Insolvencies In both NSW and Australia appointments decreased by approximately 2% in the 2013 December quarter on the previous corresponding period (“PCP”). In NSW there

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Strengthening our Presence in Greater Western Sydney

24/09/2013 by Bruce Gleeson

For many years now, Jones Partners has truly valued that importance of being accessible to professional advisors and business owners and individuals throughout Greater Western Sydney (“GWS”). The GWS  region is a very significant contributor to the States GDP and has a huge diversity in the range of businesses that operate within it. Our continued presence (via our Norwest Business Park Office) has enabled us to develop strong relationships with other professionals such as accountants, lawyers and financiers, as well as and importantly assist business owners and individuals in this region who may get into financial difficulty. Having a very strong and keen interest in what happens i

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Small Business Survival Tips

13/09/2013 by Bruce Gleeson

On 28 August 2013, I hit the airwaves on Eagle Radio – which is Australia’s first and only radio station dedicated to empowering small businesses. As an Insolvency Practitioner that specialises in advising small to medium sized businesses when they are in financial difficulty I highlighted what are the key ingredients that keep a small business afloat. Unfortunately many small businesses don’t make it through the early years of their commencement and can end up in liquidation. There is no doubting that small business is a vital ingredient as part of a thriving Australian business community. Running a small business carries risk, but also enormous opportunity if managed correctly. Cl

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Interview with Eagle Waves Radio – The Voice for Small Business

28/08/2013 by Bruce Gleeson

Looking forward to chatting with John Hagerty (co-host of the Eagle Business Show) today at 11.00am and discussing what key factors small business owners need to consider to “keep on top” and ensure they remain afloat particularly when business confidence remains low. Eagle Waves Radio is Australia’s first and only radio station dedicated to empowering small businesses. Catch up now listen to the Podcast . . .

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