The Business Set-up, Transfer, and Closure Inquiry was an inquiry undertaken by the Productivity Commission on the instructions of the Australian Government. It investigated barriers to setting up, transferring and closing a business and identified options for reducing barriers where appropriate.
The inquiry was completed in 2015, and, relevantly, included a recommendation that regulations be implemented to help categorise and shape pre-pack arrangement transactions (which are regarded as legitimate by default, and cannot be clawed back).
The investigation also included analysis and proposals on:
- The nature and the scale/extent of barriers to entry and exit that existed for businesses and their impact on economic performance.
- Appropriate options for reducing these entry and exit barriers, including but not limited to advice on the potential impacts of:
- the regulation of product and service markets
- transfers and subsidies to businesses, including import barriers
- regulations affecting the ease of starting, operationalising or closing a business
- time spent on and cost of complying or dealing with government regulation, licensing and bureaucracy
- the personal/corporate insolvency regimes on business exits.
A copy of the report can be accessed here.