Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 21 JULY 2021

Update on Statutory Demands - Changes to minimum threshold, and (for some debtors) time to comply

Swaab Attorneys
Explore more from Swaab Attorneys

From 1 August, debtor companies served with statutory demands will be subject to a $4,000 minimum and a 21-day period.

AustraliaLitigation, Mediation & Arbitration
Marc Baddams
Marc Baddams
Daniel Miller
Daniel Miller
Author LinkedIn connections

On 1 July 2021, Schedule 1 to the Corporations Amendment (Statutory Minimum) Regulations 2021 (Cth) (Regulations) came into force, increasing the minimum amount which a debtor company must owe a creditor before that creditor can issue a statutory demand to the debtor (Statutory Minimum) and changing, for some debtors, the period in which debtors can comply with a statutory demand (Statutory Period).

Before 1 July 2021, the Statutory Minimum was $2,000, unless the debtor company was eligible for temporary restructuring relief pursuant to section 458E in Part 5.3B of the Corporations Act 2001 (Cth) (Temporary Restructuring Relief), in which case it was $20,000 pursuant to Schedule 2 to the Corporations Amendment (Corporate Insolvency Reforms) Regulations 2020 (Reforms Regulations).

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in
For further information please contact:

Michael Byrnes, Partner
Phone: + 61 2 9233 5544
Email: [email protected]

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

How To Draft A Defence And Reply

Queensland civil procedure requires defendants to respond to each factual allegation with precision—admissions, denials, or non-admissions must be properly explained, while inadequate responses risk being treated as admissions. Replies serve a distinct and limited purpose, addressing only new matters raised in the defence that could affect the claim's maintainability or introduce unexpected factual questions.
AustraliaLitigation, Mediation & Arbitration
Stonegate Legal
Stonegate Legal
Article

Employ­ers Ban­ning AI Smart Glass­es From The Workplace

As wearable AI technology becomes more prevalent, employers face critical decisions about whether to ban smart glasses in the workplace. This analysis explores the privacy, cybersecurity, and workplace surveillance risks associated with AI-enabled eyewear, while examining the legal framework for regulating their use. Two important exceptions—disability accommodations and workplace safety—complicate what might otherwise be a straightforward prohibition.
AustraliaEmployment and HR
Swaab Attorneys
Swaab Attorneys
Article

Land­lords Beware: New Tobac­co Laws Could Mean Heavy Fines and Even Gaol Time

New South Wales has introduced strict legislation targeting landlords who knowingly permit tenants to sell illicit tobacco and vapes from their premises. With penalties reaching $165,000 and potential imprisonment, property owners must now actively monitor tenant activities and report suspicious behavior. The legislation also grants landlords new powers to terminate leases when closure orders are issued, fundamentally changing the landlord-tenant relationship in commercial retail settings.
AustraliaReal Estate and Construction
Swaab Attorneys
Swaab Attorneys
Article

Per­son­al Lia­bil­i­ty For Build­ing Defects: The Scope Of Sec­tion 37 Of The Design And Build­ing Prac­ti­tion­ers Act 2020 (NSW)

The NSW Supreme Court's decision in Alta Vale Residential Pty Ltd v STM123 Pty Ltd confirms that directors and project managers can face personal liability under section 37 of the Design and Building Practitioners Act 2020 for breaching statutory duties of care in construction projects. This case examines how individuals who supervise, coordinate or exercise substantive control over building work may be held personally responsible for economic losses arising from construction defects, even when acting
AustraliaReal Estate and Construction
Swaab Attorneys
Swaab Attorneys
Article

When Is Entry Into A Lot With­out The Lot Own­er’s Con­sent Per­mit­ted To Car­ry Out Repair Work To Com­mon Prop­er­ty? When There Is An Emergency

A New South Wales Civil and Administrative Tribunal case examines when an owners corporation can lawfully enter a lot without owner consent to repair common property under emergency provisions. The dispute centered on whether ongoing water leakage constituted an emergency justifying entry, and what damages flow from such access.
AustraliaReal Estate and Construction
Swaab Attorneys
Swaab Attorneys
Article

Decen­ni­al Insur­ance For New Apart­ment buildings

The New South Wales Government has introduced Decennial Liability Insurance (DLI), a groundbreaking 10-year no-fault insurance policy for new apartment buildings that guarantees protection against serious defects even if developers or builders become insolvent. This legislative reform, passed through the Fair Trading and Building Legislation Amendment Bill 2026, fundamentally changes how apartment owners are protected from structural failures and serious defects.
AustraliaReal Estate and Construction
Swaab Attorneys
Swaab Attorneys