Numbers don’t lie – if you’re an unsecured creditor, the numbers aren’t pretty

ASIC recently released their corporate insolvencies report for the 1st July 2013- 30th June 2014 financial year. This report collects and summarises information on the lodgements made by liquidators, receivers and voluntary administrators (external administrators) in the financial year for businesses that went insolvent. It gives us an insight into the

  • number of businesses that failed
  • the size of these businesses
  • the reasons for them failing
  • how much unsecured credit was never paid etc.

If you wish to view this report in full, you can find it here. In this article, I will be looking closely at certain pages in this document and bringing them into discussion.

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Pool Registration Extension – what it means for you

If you own a pool or spa and are looking to rent or sell the property on which it is located, you’ve been given some extra breathing space.

Last month the New South Wales Government extended the deadline for pool owners to register their pools until 29 April 2015. A Compliance Certificate will be issued following the registration which applies to all rental and sale properties which will remain valid for three years.

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Walton and the Phoenix

Walton Construction collapsed over six months ago. Many of the unsecured creditors are still left wondering if they’ll get anything back. Unfortunately for them, statistics show that an unsecured creditor in the construction industry gets less than 1c in the dollar.  We feel for them. Cases like this are the  very reason we at CheckVault are so passionate about making sure businesses can get their payments secured.

Interestingly, according to one source Walton Construction had a record as

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Amendments to Security Of Payments Act now in place

Earlier this week, on 21st April 2014, changes came into effect for the Building and Construction Industry Security of Payment Amendment (SOPA) Act 2013 (“Amendment Act”).  The amendments will apply to all contracts entered into on or after this date.  The amendments include some of the recommendations made in the Collins Inquiry which looked at depth at insolvency in the NSW construction industry. 

The Master Builders Association of NSW notified it’s members of the key amendments as follows:

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Survival rate in construction industry lower than average


We know the construction sector can be a tough space to work – in both the physical and economic sense.  There’s a lot of risk to any construction business.  So do you love it so much you’ll work for free? That’s the predicament many a contractor and builder face when their client can’t pay the bills.

Recent figures from the Australian Bureau of Statistics (ABS) show that

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Unsecured creditors protest as Steve Nolan Constructions fails owing $30 million

Steve Nolan Constructions went into liquidation yesterday. As reported this morning on 2GB’s The Ray Hadley Morning Show and by The Daily Telegraph unsecured creditors of Steve Nolan Constructions are going to be left out of pocket to the tune of approximately $30 million.

Members of the Construction Forestry Mining and Energy Union NSW (CFMEU) along with builders, contractors and suppliers involved on the project were protesting today at the St Leonards site to convey their outrage at the impact this will have on their businesses and employees.  A collapse of any business always has a knock on effect down the line and some of the unsecured creditors could find themselves in a real financial struggle due to the invoices that will be left unpaid.

Another casualty of this collapse will be 

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Tradies Dig Deep

A couple of weeks on from our national celebration of ANZAC Day and we’ve just received some great news from one of our active service men.

The day before ANZAC Day, the Australian Defence Force had some of their uniformed military personnel raising money to provide much needed services for our returning veterans.   They were selling badges all over the Sydney CBD and in many other locations across Australia too.  Commuters across Sydney contributed $47,000 through the badge drive on this morning alone which will go a long way to helping veterans upon their return back to their homes.

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