Palmer wants laws for businesses to trade out of bankruptcy

FAIRFAX MP Clive Palmer has called for Australia to adopt new regulatory provisions to allow businesses to trade out of difficulties rather than being wound up.

Mr Palmer said the Abbott Government was now responsible for 77% of all wind-ups in Australia, closing 556 companies in May.

The billionaire said rather than helping small business as it had claimed was the purpose of its recent budget, the government had dropped its threshold for winding up companies from $300,000 to $30,000.

He said May wind-ups were twice those of July 2014 and made the Government Australia's largest petitioner of bankruptcy.

"They are closing the doors of businesses before the business is given the opportunity to make money," he said.

"Is the government really supporting small business?

"If the government was truly committed to helping small businesses they would adopt a Chapter 11-like system, similar to that of the United States.

"This would enable the equity of the business to be sold, but would allow the business to remain operational and continue to trade.

"This would not only help to save many struggling businesses but would also save jobs."

Small Business Minister Bruce Bilson failed to respond to questions put to him about those claims.


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