The government has announced that it will continue to provide regulatory relief for businesses that have been impacted by the COVID-19 crisis by extending temporary insolvency and bankruptcy protections until 31 December 2020.
National Insurance Brokers Association (NIBA), CEO, Dallas Booth said, “This information may be of relevance for broking clients who are struggling to remain viable in the current economic circumstances.”
Regulations will be made to extend the temporary increase in the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive.
The Australian Small Business and Family Enterprise Ombudsman Kate Carnell has welcomed the federal government’s extension of temporary insolvency and bankruptcy protections, to support struggling small businesses impacted by the COVID-19 crisis.
The changes also extend the temporary relief for directors from any personal liability for trading while insolvent.
“These necessary measures give otherwise viable small businesses more time to recover, preventing a wave of unnecessary insolvencies,” Carnell said.
These measures were part of more than 80 temporary regulatory changes the government made designed to provide greater flexibility for businesses and individuals to operate during the COVID-19 crisis.
The government has also indicated that it will continue to help businesses successfully adapt and restructure so that they can bounce back on the other side of this crisis.