Turnaround with protection.
Protect yourself
Providing you with time to recover your business without the risk of liability for insolvent trading.
Endless opportunities
Safe Harbour enables the business to uncover the opportunities on recovering the company debt.
Take a breather
Providing you with the space to breathe. Work with key experts on devising a plan to get the business back on track.
Tough times are part of business. If your company still holds value, Safe Harbour offers a path forward, protecting you from risk while preserving what matters.
Enjoy the breathing space and time to get the business back on track, entering into recovery as opposed to an insolvency procedure.
If your company is at risk of insolvency, the Safe Harbour provision can give you breathing room. It allows directors to meet their duty to avoid insolvent trading while providing time to work on a turnaround, without the immediate threat of legal action.
Introduced in September 2017, this legislation protects directors from being held personally responsible for company debt, as long as they’re actively working toward a better outcome and taking genuine steps to restructure or recover.
In business, times can be tough. When experiencing the tough times but find there’s value within the company, Safe Harbour provides the solution for you. Safe Harbour provides protection from risk and preserves value to get you through the tough times.
Enjoy the breathing space and time to get the business back on the front foot, entering into recovery as opposed to an insolvency procedure.
One of the benefits of safe harbour is that you remain in control of the process. If you're eligible for safe harbour, directors should then consider taking the steps outlined below.
When using safe harbour insolvency, a range of factors need to be considered. Below is a simple checklist that directors can use to determine if they are carrying out their duties and responsibilities.
This is the point where a director must make a determination as to the best course of action for the company. They may consider:
This is the ideal stage for directors to obtain professional advice from industry experts such as Mackay Goodwin. Providing our team with all the information required will allow us to accurately determine the best course of action moving forward. One recommendation may be to proceed to the next stage of the safe harbour process.
Once the safe harbour provisions have been accessed, it is time to develop a restructuring plan. As business turnaround and restructuring professionals, our team will identify key areas and provide recommendations that will form the basis of your plan.
We will be readily available to assist throughout the process, but one of the key features of safe harbour laws is that you are allowed to remain in control of the process. There will be no defined time period and key stakeholders such as customers, creditors and suppliers do not need to be notified.
It is this flexibility that makes safe harbour an attractive option for directors.
When implementing a restructuring plan, it is important for directors to inform any other board members, outline the restructuring plan and specifically clarify the steps that will be taken.
It is also necessary to continually assess whether safe harbour remains the best course of action. For our clients, this is easy as we will remain by your side throughout the process.
Despite the absence of a defined time period, safe harbour provisions state that attempts to improve the company situation must be completed in a 'reasonable time frame'.
As a result, a restructuring plan should have guidelines with respect to review and potential adjustment. Changes may be made several times during safe harbour as long as the restructuring plan remains the best option for the company.
If this changes at any point, it may be necessary to appoint an administrator or liquidator. Our clients will be informed if this is the appropriate course of action.
Safe Harbour is just one option. We will explore all viable solutions for your business to ensure the best possible outcome.
Winding up your insolvent company for good? Liquidation is a formal process that ensures remaining assets are fairly distributed to creditors. Our experts guide you through every step, providing clear advice and support to help you exit with confidence and compliance.
In a CVL, our ASIC-registered liquidators manage the formalities - from convening shareholders to placing the company into liquidation - making the process smoother and less stressful at every stage.
Eliminate communication hurdles when dissolving a company through MVL. Allow us to assist by conducting a review, liquidating your company and distributing assets to the relevant parties.
Worried your business may not stay afloat? Voluntary Administration gives you the breathing room to restructure, continue trading, and work towards profitability - while ensuring fair distribution to creditors.
Want to manage debt while retaining control of your business? If your company owes less than $1 million, a Small Business Restructure offers a faster, more cost-effective solution.
We bring extensive experience in Receivership appointments and acting as Agent for Mortgagees. If you're a funder, secured creditor, or adviser to a financial institution, we’re here to support you.
A powerful tool to gain valuable insights into your business.
Diagnose areas of improvement and maintenance with actionable, measurable plans to enhance your company’s future.
Book today for your free Business Health Check.
The 3-step business recovery process to get your business on the front foot again.
When an electronic security company in Brisbane was experiencing difficulty with their cash flow, Mackay Goodwin stepped in to help. With clients ranging from small boutiques to international mega-corporations, an 85% reduction in debt got the company through a major trading and cash flow problem.
When an Adelaide building development corporation found itself in a lengthy and protracted legal dispute over a costly project, it found itself unable to trade out the heavy losses it had incurred as a result of the deal. Thanks to a DOCA, restructuring and dispute resolution managed by Mackay Goodwin, the corporation continues to trade today.
When a Melbourne-based earthmoving firm contacted Mackay Goodwin about their financial difficulties, they had already built up a $280,000 backlog with the Australian Taxation Office (ATO). Thanks to the advice and actionable solutions of our experts, the firm saw a 75% reduction in tax debt, and it got this earthmoving corporation moving again.
If your business is showing signs of financial distress, don’t wait for the situation to escalate. With the right advice and a clear plan, you may be eligible for Safe Harbour protection, giving you the best chance to stabilise and move forward. Take the first step toward a stronger financial future with Mackay Goodwin.
Edwin is a valuable member of the senior Mackay Goodwin team, with a huge amount of expertise and experience in running a range of different Deed of Company Arrangement proposals, for Administrations across a diverse range of industry sectors, and in all states across Australia.
Gavin King is a seasoned business advisor and insolvency expert with extensive experience in corporate restructuring and turnaround management. Over the course of his career, Gavin has helped numerous businesses navigate complex financial challenges, providing tailored solutions that maximise stakeholder value. Specialising in insolvency administration, he brings a hands-on approach to managing voluntary administrations, liquidations, and corporate workouts. With a proven track record of leading successful recovery processes, Gavin leverages his deep industry knowledge to guide businesses through periods of distress, ensuring they emerge stronger and more resilient.
Bradley Solly is a Chartered Accountant with over a decade of experience advising directors and business owners in financial distress. Specialising in business turnaround, debt recovery, and insolvency, he helps clients explore all options to preserve value and improve outcomes for all stakeholders. With advanced certifications in restructuring and insolvency from ARITA, Bradley offers expert guidance on business viability, creditor management, and sustainable recovery solutions. He has held senior roles at firms like GTS Advisory, JBC Corporate, and RSM Australia, bringing a wealth of expertise to every client engagement.
Safe Harbour provisions apply when a director recognises that a company is in financial distress and takes steps to develop a course of action likely to lead to a better outcome than administration or liquidation. With safe harbour protection, directors are shielded from personal liability for debts incurred while trading, provided they are acting on appropriate advice and working toward restoring profitability.
As defined by the Corporations Act 2001 (Cth), safe harbour is taking a course of action reasonably likely to lead to a better outcome for the company. When a director has any reason to suspect their company is approaching insolvency, it’s time to act.
Safe Harbour legislation supports companies by:
To be eligible, directors must demonstrate they are actively involved in a plan to improve the company’s financial position, including:
There is no fixed date limit for Safe Harbour protection, but directors must act within a reasonable timeframe to ensure the plan remains viable. Regular review and updates are essential. If the plan no longer offers the best chance of success, or if creditors are unlikely to benefit, directors should seek appropriate advice or make an immediate appointment with a Safe Harbour advisor to assess next steps.