ASIC Corporate Insolvency Update – Issue 37

Issue 37, September 2025

Initial statutory reports – some important updates and reminders

Changes made to the Initial statutory report (ISR) form

Since 28 July 2025, we have streamlined the ISR form by removing a small number of repetitive or unnecessary questions.

Taking into account the feedback we received earlier this year, the updates include:

1. streamlining repetitive questions asking whether you have evidence to support an allegation or if you are aware of evidence held by another person;
2. removing certain questions relating to seeking assistance from ASIC where you have not obtained all the books and records; and
3. removing the need to specify the estimated remuneration amount and time to complete the administration.

Corresponding updates have also been made to the ISR user guide and Regulatory Guide 16 External administrators and controllers: Reporting of possible offences and misconduct (RG 16).

Dedicated mailbox to respond to your ISR and Supplementary statutory report (SSR) queries

We are committed to working constructively with liquidators to identify and prioritise responses to corporate misconduct.

A dedicated mailbox is available for external administrators and controllers to raise questions with ASIC regarding the preparation and lodgement of reports of misconduct in accordance with RG 16.

We encourage you to contact us at ISRandSSR.Questions@asic.gov.au with any questions you may have about:

• an ISR and/or SSR
• determining whether to lodge an SSR
• any other queries or feedback in relation to the ISR, SSR, ISR user guide and RG 16.

Reminder: ISR and SSR process changes – intention not to submit an SSR is no longer required

We remind registered liquidators that you do not need to notify ASIC of your intention not to submit an SSR unless you have been:

• contacted by ASIC in relation to the matter; or
• granted or have an application under consideration for assetless administration funding.

Since 11 April 2025, we stopped sending automated SSR requests following system-based ISR assessments.

Registered liquidators should use their professional judgment to determine whether it is desirable to submit an SSR in a particular case.

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ASIC appoints 60 registered liquidators to the Abandoned Company Liquidator Panel

We have appointed 60 suitably qualified and experienced registered liquidators to our Abandoned Company Liquidator Panel, effective from 6 July 2025. This follows the conclusion of the previous Panel’s term, which was in place from July 2018 to July 2025.

Under section 489EA of the Corporations Act 2001, ASIC may wind up and appoint a liquidator to abandoned companies. This may allow the employees of those companies to access their unpaid entitlements under the Fair Entitlements Guarantee Act 2012. Without the appointment of a liquidator, these employees would not be able to access their entitlements. The appointments are funded through the Assetless Administration Fund (AAF) and assigned to selected panel members.

In January 2025, we advertised the AAF grant opportunity inviting applications from registered liquidators who met strict eligibility and selection criteria for inclusion in the panel. Applications closed in February 2025 and resulted in a highly competitive pool of candidates.

The panel will be active for five years from July 2025 to July 2030. ASIC may, at its discretion, extend the panel twice, with each extension lasting 12 months.

For additional details, please refer to the Abandoned Company Liquidator Panel members page on the ASIC website.

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Adequate reasons for lodging an application for the early destruction of books

The last external administrator of a company must retain the books and records of the company, and of the external administration, for five years from the end of the external administration (retention period) as outlined in section 70-35 of Schedule 2 of the Corporations Act (Schedule 2).

The books and records of the company may be destroyed at the end of the retention period. However, a liquidator may apply to ASIC for relief under the Corporations Act to destroy the books and records of the company within the retention period.

We will only provide consent for early destruction of books and records where the reason for the application is adequate. When selecting ‘Other’ as a reason for lodging the application for the early destruction of books, it is important to provide adequate details. Simply noting ‘The Company has been deregistered, and the books and records are no longer required’ is not considered an adequate reason. You should provide a statement setting out why ASIC should exercise its discretion to give consent (See RG 81.14(g) in RG 81 External administration: Early destruction of books).

When assessing applications for the early destruction of books and records of a company, ASIC must consider all factors relating to the potential need of the books for investigation, prosecution, or other litigation. As a result, the ability to demonstrate adequate reasons for the early destruction of books and records may not always result in ASIC providing its consent.

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Independent experts in section 444GA transactions

We have recently published an article reminding external administrators and advisors that an independent expert engaged to prepare a report for shareholders in connection with a share transfer under section 444GA of the Corporations Act will generally be required to hold an Australian financial services licence.

Read the article, Independent experts in section 444GA transactions, in Issue 23 of our Corporate Finance Update.

To learn more about regulatory developments and issues affecting corporate finance activity, subscribe to the Corporate Finance Update newsletter.

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Tips and reminders

Below are a tip and a reminder for registered liquidators and their staff.

Tip: Use the Company Alert service to track changes made to a company or to check documents lodged

Company Alert is a free, simple way to track any:

• changes made to a company such as change of name, registered office or officeholders;
• notices relating to external administration appointments;
• applications for deregistration or reinstatement including where a company’s status changes to ‘SOFF’; and
• documents lodged with ASIC.

This feature is useful for tracking any paper form lodgements (where online lodgement has been not available) as you can set up a Company Alert which notifies you via email when the lodgement has been received by ASIC.

For more information, refer to Information Sheet 21 Using the Company Alert service (INFO 21).

Reminder: Lodge late fee waiver applications online

Please do not send your late fee waiver requests to ASIC via post or email.

To have a late fee waived by ASIC, you need to apply online: Fee Waiver Application.

A late fee waiver may only be requested when circumstances outside of your control occur. Supporting evidence should be included with your online application.

ASIC will provide written notification to applicants regarding the approval or rejection of their late fee waiver applications. This may take up to 28 days.

For additional details, please refer to the Ask ASIC to review a late fee page on the ASIC website.

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Inviting input from registered liquidators

We are working to improve our guidance and information for registered liquidators and are interested in hearing your views on the topics below:

ASIC’s website content

We have recently updated the design of the ASIC website to make it easier to find information.

We are now starting a process to review the content in the Insolvency and Registered liquidators sections of our website to ensure the information is up-to-date, easy to navigate, and meets the needs of the users of that information. We welcome any suggestions you have on how we can improve the information available on these sections of the website.

Please send your views to corporateinsolvencyupdate@asic.gov.au with the subject line: Insolvency webpage feedback.

ASIC’s orders undoing the effect of creditor-defeating dispositions

We are reviewing how we have administered our power under section 588FGAA(3) of the Corporations Act to make orders undoing the effect of creditor-defeating dispositions, including how we deal with requests from registered liquidators and our existing guidance on this topic.

We will be conducting a targeted consultation with stakeholders this year.

If you have lodged a request for ASIC to make orders undoing the effect of a creditor-defeating disposition and/or would like to be part of the targeted consultation, please let us know. We would be interested to hear about your experience and/or any feedback you would like to provide.

Please register your interest and/or provide your feedback by email to corporateinsolvencyupdate@asic.gov.au with the subject line: Creditor-defeating dispositions consultation.

For more information, see: Information sheet 261 ASIC orders about creditor-defeating dispositions (INFO 261)

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Small business restructuring – ATO resources

The Australian Taxation Office (ATO) has recently updated their small business restructuring webpages to help registered liquidators and small businesses understand:

• insolvency processes that support small business; and
• how small business restructuring works and what factors influence their approach to a restructuring plan.

For more information, visit the following webpages on the ATO website:

• Insolvency processes that support small business
• Small business restructuring

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Latest news, updates and announcements

Report 813 Regulatory simplification

Report 812 ASIC enforcement and regulatory update: January to June 2025

25-155MR ASIC disqualifies NT director Mark Zappia for five years

25-140MR ASIC disqualifies NSW construction director for five years

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Insolvency statistics

Our insolvency statistics show 14,722 companies entered external administration in 2024–25 for the first time, up 33.2% from 11,053 companies recorded in 2023–24. The 2025–26 financial year statistics (up to 31 August) show 2,452 companies entered external administration (up 2% from 2,406 companies recorded for the same period in 2024–25).

The increases over recent years in the number of companies entering external administration has now started to moderate, levelling out at around 1,200 to 1,300 per month.

At 30 June 2025 there were around 3,564,367 registered companies. The ratio of companies entering external administration in the 12 months to 30 June 2025 compared to the number registered (0.41%) is up from the 12 months to 30 June 2024 (0.33%) but still well below the prior peaks in the 2011–12 and 2012–13 financial years of 0.56% and 0.53%, respectively.

For more information, please see insolvency statistics on the ASIC website.

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Contacts

Email support and contact details for ASIC team members for each state and territory are available on the Contacts page.