The Australian government has proposed reforms to the Australian bankruptcy and personal insolvency systems. These reforms aim to ensure the fair application of these systems to those impacted.

On 1 August 2024, the Magistrates Court of Queensland found Peak Physique Franchisor Group Pty Ltd (Peak Physique) engaged in misleading and deceptive conduct and was in breach of section 18 Australian Consumer Law through its conduct which induced the purchase of one of their premises through representations of ongoing support to the franchisee and the profitability of the franchise purchased.

Collective bargaining presents on its face an attractive option for franchisees. By joining forces and splitting negotiating costs, franchisees may be able to use collective power to strengthen their bargaining position and negotiate more favourable outcomes with their franchisor.

The Federal Court has confirmed that a liability to pay Capital Gains Tax applies to trustees in bankruptcy in respect of capital gains derived in their capacity as trustee.

On 18 January 2023 the Federal Court of Australia handed down its decision in Copeland in his capacity as liquidator of Skyworkers Pty Limited (in Liquidation) v Murace [2023] FCA 14. The decision resulted in Liquidator’s insolvent trading claim against Mr Murace being struck out and costs awarded to the defendant, although the liquidator was then allowed to file a further statement of claim.

Guidance has been provided to liquidators by the Federal Court of Australia in Stone (Liquidator), in the matter of RIC Admin Pty Ltd (in liq) v Mandalinic (No 2) regarding the analysis of financial records required to determine the solvency of a company and what conduct of a director will constitute an unreasonable director related transaction.

In Re Clarinda (liq) [2023] VSC 109, parties sought the leave of the Court to use documents produced in an earlier proceeding to demonstrate the insolvency of the company. Justice Connock ultimately allowed the documents to be reproduced on the basis that the issues in dispute are the same, or substantially the same, and set out the special circumstances which substantiate this reproduction.

On 4 June 2024 the Federal Court of Australia handed down the decision of Fair Work Ombudsman v 85 Degrees Coffee Australia Pty Ltd [2024] FCA. This decision resulted in the Fair Work Ombudsman penalising the Australian franchisor of the 85 Degrees brand $1.44 million for its “systemic failure to ensure compliance within its franchise network” which included underpayments at several of their Sydney franchisee outlets.

The Government has released its response to the Franchising Independent Review agreeing to the majority of the recommendations. This article identifies some key changes to be made, the timing for these and explores what this may mean for franchises.

Drafting is an art form which requires precision, practice and preferably access to a large bank of precedents to assist in tailoring what is required to the circumstances and by the parties the subject of an agreement.

The ACCC has announced its enforcement and compliance priorities for 2024-2025. This article explores what this may mean for franchises.

This update replicates a legal update provided to the Franchise Council of Australia’s February breakfast at Kooyong Lawn Tennis Club.

There are a number of different ways that assets can be recovered from or for a bankrupt‘s estate or trust.

The concept of goodwill in a legal context is different to the concept of goodwill when it is used is an accounting context.  

On 22 September 2023 the Commonwealth government released the Personal Property Securities Amendment Bill 2023 and amending regulations for public consultation until 17 November 2023. The aim is intended to simplify the use of the law, in particular the registration process, and clarify its application, especially around enforcement priorities.

The ATO has a new collaborative and tailored approach to managing the collection and recovery of disputed debts.

This case concerned an uncontested application to extend the time for registration of a security interest on the Personal Properties Securities Register (PPSR), requiring consideration of what constituted a ‘security interest’ capable of registration on the PPSR.

This case provided a determination about which of the company creditors was entitled to receive, in priority of other creditors, tax refunds obtained by the liquidator in the course of winding up the company.

whether a lease of goods and bailment constituted a PPS lease within the meaning of the Personal Property Securities Act 2009 (Cth) (PPSA).