COVID-19 Australian Government- Bankruptcy law changes to provide relief
4 May 2020
The Australian Government has temporarily changed bankruptcy law to help protect people who are facing unmanageable debt as a result of the economic impacts of COVID-19.
If you’re a sole trader, or operating a business as a partnership, you could face personal bankruptcy if you can’t pay your debts.
If you’re in financial difficulty you can now apply for temporary debt protection; this prevents recovery action by unsecured creditors for six months. You can use the time to:
- seek free advice from a financial counsellor
- negotiate payment plans with creditors
- consider whether you require a formal insolvency option.
In addition, the temporary debt relief measures have increased the:
- minimum amount of debt that can trigger bankruptcy (from $5,000 to $20,000)
- time an individual has to respond to a Bankruptcy Notice (from 21 days to six months).
If you’re concerned about your finances, help is available. You can access advice from an insolvency practitioner registered with the Australian Financial Security Authority (AFSA), or get free support through the National Debt Helpline by calling 1800 007 007.
Source: Australian Taxation Office News Room
Date: 12 May 2020
Coffs Coast Consulting Services
Like and Follow Coffs Coast Consultings Facebook Business Page to receive COVID-19 Updates and weekly tax tips.
Coffs Coast Consulting Services:
- Assistance to obtain COVID-19 Government Stimulus and Grants
- Individual and Business Taxes
- Business Advisory
- Xero Accounting Software (Accounting systems tailored to your business and remote support)
- Assistance in getting your book work up-to date to tap into government grants
Yes we are working remotely so full services are available.
Contact Shannon at Coffs Coast Consulting if you require assistance in getting your tax up-to-date to obtain aspects of the Federal Government Stimulus Package Ph (02) 5606 3692 or in box me through this website.
