The Australian Government has released its plan to help elevate
the economic impacts of COVID-19 on Australian businesses. The
Government's economic response aims to implement measures to
prevent otherwise profitable and viable businesses from facing
financial distress during the next 6 months.
Demands from Creditors – Companies and Individuals
The Government will be temporarily increasing the current
minimum threshold for creditors issuing a statutory demand on a
company from $2,000 to $20,000. In respect of timeframe, the
Government will also be temporarily increasing the statutory
timeframe for a company to respond to a statutory demand from 21
days to 6 months.
In an attempt to also assist individuals, the Government will be
temporarily increasing the minimum amount of debt required for
creditor to initiate bankruptcy proceedings against a debtor from
$5,000 to $20,000. The timeframe the debtor has to respond to a
bankruptcy notice will also be temporarily
