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