THE TURNAROUND
Safe Harbour Special Edition
Welcome to the seventh edition of the Turnaround! Following the editing of the Safe Harbour Podcast with Gen Sexton that leads this edition, our Producer Dom suggested “why don’t you do a Safe Harbour edition?” As I reflected on that suggestion, I thought the time is right for something thorough, and there is actually a good number of interesting issues, around which we can place a bit of a Safe Harbour Bible!
So: we began at the beginning, how the Safe Harbour ‘word’ was created. In addition to the brilliant Podcast with Gen about her experiences as Chair of the Safe Harbour Panel, we have curated material on the nature of a ‘Better Outcome”, the role of an AQE, issues of conflict of interest, warning signs, NFP’s, and a revisit of some of our other stories.
The Latest from Wexted
The Turnaround Podcast: Genevieve Sexton — Safe Harbour and are we making a difference?
In this episode of The Turnaround, we sit down with Genevieve Sexton, Chair of the Safe Harbour Review Panel, to explore the evolution of Australia’s Safe Harbour regime. Genevieve shares insights from the 2021 review — from navigating a wide spectrum of submissions to shaping key recommendations and pushing for meaningful reform. We discuss the role of Safe Harbour as a governance tool, the changing mindset of company boards, and whether the law is delivering the impact it promised.
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In the Beginning: The Genesis of the Safe Harbour Defence
The manner in which the Safe Harbour Law developed, the associated consultative processes and the ultimate form of the legislation adopted, will be instructive as the reform agenda continues. We revisit some of the enquiries, papers and public work that gave rise to the Safe Harbour we work with today.
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Same, Same, Different: Appropriately Qualified Entities (AQEs) in Safe Harbour
As companies increasingly turn to the Safe Harbour provisions under section 588GA of the Corporations Act 2001, the role of the Appropriately Qualified Entity (AQE) is gaining prominence. One of the issues of contention in the Safe Harbour Panel Review was the identity of the advisors, and their ‘appropriateness’ to undertake that task. What are the range of factors a Board - or their advisors - should consider in seeking an AQE who will be regarded as ‘Appropriate’?
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Looking Over The Cliff: The Better Outcome in Safe Harbour
When the Safe Harbour is ultimately tested, what is ‘reasonably likely’ to be a Better Outcome will be subject to significant scrutiny. How much does the AQE need to do, and what is the importance of medium and long-range modelling to ensure going concern and sustainability? What shape does the counterfactual assessment take, and what have our experiences told us is necessary?
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Not for Profits: Insolvent Trading and the Safe Harbour regime
In this article we explore the interplay between the duty to prevent trading an organisation whilst it is insolvent, the protections of the Safe Harbour regime, and Australia’s NFP sector.
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Safe Harbour Pressure Points and Warning Signs
When considering the commencement of a Safe Harbour process, the suspicion of financial distress requires an assessment of the warning signs for insolvency.
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SPOTLIGHT ON SAFE HARBOUR: HAVING YOUR CAKE AND EATING IT TOO
With the rise in Safe Harbour awareness and appointments, there is an increase in Insolvency Practitioners potentially acting Appropriate Qualified Entities and finding ways to subsequently consent to act as voluntary administrators. We unpack that issue.
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THE RISE OF SAFE HARBOUR PROTECTION BEFORE A SMALL BUSINESS RESTRUCTURE
Obtaining insolvent trading protection under safe harbour (Section 588GA), prior to a Small Business Restructure is possible, although directors should obtain advice and ensure the plan under safe harbour is reasonable.
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Spotlight on Safe Harbour - Leap of faith
There have been concerns with the subjective nature of the use of the words “a person starts to suspect” insolvency to enliven the Safe Harbour test, what is being done to clarify the concept of “Suspicion of insolvency’ in Section 588GA?
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Spotlight on Safe Harbour - Asic tighten up regulatory guidance
Following the Safe Harbour Panel Review, ASIC has now provided “Plain English” regulatory guidance in relation to aspects of Safe Harbour, that will be of help to both Advisors and Directors.
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SPOTLIGHT ON LAW: CASE COMMENTARY - SAFE HARBOUR TO LIQUIDATOR
A recent Administrative Review Tribunal of Australia case considered the implications of a Safe Harbour Advisor taking an Appointment as Liquidator and whether he should be “publicly admonished or reprimanded” for his conduct. Wexted reviews the case and findings.
Read the articlePublished July 2025
Foreword by Joseph Hayes
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