The Federal Government today has announced an extension to the temporary insolvency and bankruptcy protections, due to expire on 30 September 2020, until 31 December 2020 to protect businesses from the economic costs of COVID-19.

This means an extension towards the temporary increase in the threshold at which creditors can issue a statutory demand on a company and the time companies have to respond to statutory demands they receive. The changes will also extend the temporary relief for directors from any personal liability for trading while insolvent.

The Treasury’s media release on the extension can be accessed here.

More information on the temporary insolvency and bankruptcy protections can be accessed here.