Document ID: chunk:federal_register_of_legislation:C2025C00185:section:588ga:p2
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 588GA (pt 2/3)
Character Range: 2046681–2049140

implementing a plan for restructuring the company to improve its financial position.
 (3) A person who wishes to rely on subsection (1) in a proceeding for, or relating to, a contravention of subsection 588G(2), 588GAB(1) or (2) or 588GAC(1) or (2) bears an evidential burden in relation to that matter.

Matters that must be being done or be done
 (4) Subsection (1) does not apply in relation to a person and either a debt or a disposition if:
 (a) when the debt is incurred, or the disposition is made, the company is failing to do one or more of the following matters:
 (i) pay the entitlements of its employees that are payable;
 (ii) give returns, notices, statements, applications or other documents as required by taxation laws (within the meaning of the Income Tax Assessment Act 1997); and
 (b) that failure:
 (i) amounts to less than substantial compliance with the matter concerned; or
 (ii) is one of 2 or more failures by the company to do any or all of those matters during the 12 month period ending when the debt is incurred;
unless an order applying to the person and that failure is in force under subsection (6).
Note: Employee entitlements are defined in subsection 596AA(2) and include superannuation contributions payable by the company.
 (5) Subsection (1) is taken never to have applied in relation to a person and either a debt or a disposition if:
 (a) after the debt is incurred, or after the disposition is made, the person fails to comply with paragraph 429(2)(b), or subsection 438B(2), 475(1), 497(4) or 530A(1), in relation to the company; and
 (b) that failure amounts to less than substantial compliance with the provision concerned;
unless an order applying to the person and that failure is in force under subsection (6).
 (6) The Court may order that subsection (4) or (5) does not apply to a person and one or more failures if:
 (a) the Court is satisfied that the failures were due to exceptional circumstances or that it is otherwise in the interests of justice to make the order; and
 (b) an application for the order is made by the person.

Definitions
 (7) In this section:
better outcome, for the company, means an outcome that is better for the company than the immediate appointment of an administrator, or liquidator, of the company.
evidential burden, in relation to a matter, means the burden of adducing or pointing to evidence that suggests a reasonable possibility that the matter exists or does not exist.