Limitation on right of suppliers of essential services to insist on payment as condition of supply
(1) If: (a) a relevant authority of an eligible company requests, or authorises someone else to request, a person or authority (the supplier) to supply an essential service to the company in Australia; and (b) the company owes an amount to the supplier in respect of the supply of the essential service before the effective day; the supplier must not: (c) refuse to comply with the request for the reason only that the amount is owing; or (d) make it a condition of the supply of the essential service pursuant to the request that the amount is to be paid. (2) In this section: effective day, in relation to a relevant authority of an eligible company, means the day when the relevant authority became a relevant authority of the company, even if that day began before this Act commenced. eligible company means a company: (a) that is being wound up; or (b) a provisional liquidator of which is acting; or (c) that is under administration; or (d) that has executed a deed of company arrangement that has not yet terminated; or (da) that is under restructuring; or (db) that has made a restructuring plan that has not yet terminated; or (e) a receiver, or receiver and manager, of property of which is acting. relevant authority, in relation to an eligible company, means: (a) the liquidator; or (b) the provisional liquidator; or (c) the administrator of the company; or (d) the administrator of the deed of company arrangement; or (da) the restructuring practitioner for the company; or (db) the restructuring practitioner for the restructuring plan; or (e) the receiver, or receiver and manager; as the case requires.
Sourced from the Federal Register of Legislation at 17 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.
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