Extension of temporary relief for financially distressed businesses
The Federal Government announced yesterday an extension to the temporary insolvency and bankruptcy protections, due to expire on the 30th September 2020, until 31 December 2020.
The Federal Government has put in place an extension to the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to the statutory demands they receive.
The changes will also extend the temporary relief for directors from any personal liability for trading whilst insolvent.
Please remember, if you are a director of a company you can be held personally liable for unpaid Pay As You Go (PAYG) Withholding, superannuation guarantee liabilities and, since 1 April 2020, unpaid GST. To try and avoid any personal liability, it is critical directors ensure all activity statements are lodged on time.