EXTENSION TO INSOLVENCY AND BANKRUPTCY PROTECTIONS
On 22 September 2020, the Corporations and Bankruptcy Legislation Amendment (Extending Temporary Relief for Financially Distressed Businesses and Individuals) Regulations 2020 came into effect, extending the temporary insolvency and bankruptcy protections from 25 September to 31 December 2020.
The Act extends temporary insolvency and bankruptcy provisions in the Bankruptcy Regulations 1996 and Corporations Regulations 2001.
According to Federal Treasurer Josh Frydenberg, “The extension of these measures will lessen the threat of actions that could unnecessarily push businesses into insolvency and external administration at a time when they continue to be impacted by health restrictions. These changes will help to prevent a further wave of failures before businesses have had the opportunity to recover.”
To learn more about the temporary insolvency and bankruptcy measures currently in place, see ‘COVID-19 Coronavirus and Changes to Insolvency Laws’.
The above has been provided for your information and is not to be relied upon as legal advice. Advice may differ depending on a number of factors, including the continued updates from the government.
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