The Federal Government is temporarily increasing the threshold at which banks and other lenders can issue a statutory demand on a company, as well as the time companies have to respond to statutory demands received.
The package also includes temporary relief for directors from any personal liability for trading while insolvent. The Corporations Act 2001 will be amended to provide temporary and targeted relief for companies to deal with unforeseen events that arise as a result of the Coronavirus.
This builds on the support for business and business investment provided in the Federal Government’s first economic support package, which included:
- increasing the instant asset write-off
- backing business investment by providing accelerated depreciation deductions
- supporting apprentices and trainees
- targeted support for Coronavirus-affected regions and communities.
For more information:
Australian Treasury: Temporary relief for financially distressed businesses
Industrial Relations
T: 03 9829 1123
E: ir@vacc.com.au