These are new measures that have been introduced in this package for the next 6 months:
- Temporary higher thresholds and more time to respond to demands from creditors (Statutory Demands) – these measures will increase the thresholds from $2,000 to $20,000 at which creditors can initiate insolvency or bankruptcy and increase the time to respond from 21 days to 6 months.
- Temporary relief from Directors’ personal liability – this measure will provide temporary relief for directors for any personal liability for trading while insolvent – this is only in respect to debts incurred in the ordinary course of the company’s business
- There will also be some additional flexibility introduced in relation to provisions of the Corporations Act 2001 to assist in dealing with unforeseen events arising from the current crisis.
For more information, view the treasury fact sheet.
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