The new Coronavirus Economic Response Package Omnibus Act 2020 (Cth) (CERPO Act) provides support to businesses and individuals suffering financial distress for at least 6 months from 25 March 2020. Relief has been given to businesses, individuals and directors.

Businesses – Creditors Statutory Demands

The Federal Government will extend the temporary relief measures for financially distressed individuals and businesses to 31 December 2020.

The measures include:

1. The period within which a statutory demand must be complied is extended from 21 days to 6 months.

2. The minimum amount for a statutory demand is $20,000

3. The period within which a bankruptcy notice must be complied is extended from 21 days to 6 months

4. The minimum amount for a bankruptcy notice is $20,000