#

Ease of Doing Business in

Australia

Australia Download Profile (1733.5KB, pdf)
Region OECD high income
Income Category High income
Population 23,781,169
GNI Per Capita (US$) 60,070
City covered Sydney

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 15 13 down
2
80.26 80.25 down
0.01
Starting a Business 7 8 up
1
96.47 96.47
-
Dealing with Construction Permits 2 2
-
86.56 86.56
-
Getting Electricity 41 40 down
1
82.31 82.31
-
Registering Property 45 47 up
2
74.22 74.24 down
0.02
Getting Credit 5 5
-
90.00 90.00
-
Protecting Minority Investors 63 62 down
1
58.33 58.33
-
Paying Taxes 25 27 up
2
85.60 85.60
-
Trading across Borders 91 90 down
1
70.65 70.65
-
Enforcing Contracts 3 3
-
79.72 79.72
-
Resolving Insolvency 21 20 down
1
78.73 78.57 up
0.16

DB 2017 Rank:

21

DB 2016 Rank:

20

Change in Rank:

down1

DB 2017 DTF (% points):

78.73

DB 2016 DTF (% points):

78.57

Change in DTF (% points):

up0.16

Indicator Australia OECD high income
Recovery rate (cents on the dollar) info_outline 82.4 73.0
Time (years) info_outline 1 1.7
Cost (% of estate) info_outline 8 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 1 ..
Strength of insolvency framework index (0-16) info_outline 11 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 82.4
    Proceeding BizBank is likely to move aggressively to enforce its security right and sell the assets. BizBank will likely be authorized under the loan agreement to ask the court to appoint a receiver, who will then take control of the pledged assets. As Mirage will have no other assets left, this will results in the appointment of a liquidator to the company, and the receiver and the liquidator will proceed concurrently. receivership
    Outcome The receiver will take the maximum efforts to sell the hotel as a going concern, because that is the best way to maximize the proceeds of the sale. If the hotel is sold, this will allow the business to continue trading under different ownership. going concern
    Time (in years) It takes 12 months to complete the receivership/foreclosure procedure in Australia. As a first step, BizBank will ask the court to appoint a receiver, who will take control of the business/assets. The receiver will evaluate the company's financials to determine whether continuous operations are possible or whether Mirage's business should be terminated. Most likely, it will be possible to keep Mirage operating, so the receiver will make arrangement to continue and possibly improve the performance of the business. In the meantime, the receiver will look for a buyer willing to purchase the hotel as a going concern. After the sale of the business, the receiver will remit the payment to the secured creditor. 1.0
    Cost (% of estate) Major expenses include attorneys' fees (3%) and remuneration of the receiver (5%). 8.0
    Answer Score
    Strength of insolvency framework index (0-16) 11.0
    Commencement of proceedings index (0-3) 2.5
    What procedures are available to a DEBTOR when commencing insolvency proceedings? (a) Debtor may file for both liquidation and reorganization 1.0
    Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (b) Yes, but a creditor may file for liquidation only 0.5
    What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) Debtor is generally unable to pay its debts as they mature 1.0
    Management of debtor's assets index (0-6) 5.0
    Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the debtor? No 0.0
    Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? Yes 1.0
    Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
    Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
    Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of insolvency proceedings? Yes 1.0
    Does the insolvency framework assign priority to post-commencement credit? (b) Yes over ordinary unsecured creditors but not over secured creditors 1.0
    Reorganization proceedings index (0-3) 0.5
    Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5
    Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as what they would obtain in a liquidation? No 0.0
    Are the creditors devided into classes for the purposes of voting on the reorganization plan, does each class vote separately and are creditors in the same class treated equally? No 0.0
    Creditor participation index (0-4) 3.0
    Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency representative? Yes 1.0
    Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? No 0.0
    Does the insolvency framework provide that a creditor has the right to request information from the insolvency representative? Yes 1.0
    Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting creditors' claims? Yes 1.0

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”.