The doctrine of ultimate effect continues to apply under s 588FA of the Corporations Act 2001 (Cth), requiring courts to look at the ultimate effect of the entire transaction to determine whether a payment constitutes an unfair preference. However, the doctrine does not protect payments made in discharge of existing debts (such as royalties for ore already extracted) where the payment does not secure the continuing provision of goods, services, or assets of corresponding value — the mere fact that non-payment might have led to forfeiture or closure of the debtor's business is insufficient. Sheldrake v Paltoglou [2006] QCA 52, which held the doctrine did not survive the 1992 amendments, is doubted.
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