Delaying the Inevitable? – Temporary Insolvency Relief Extended to 2021

In March this year, the Australian Government implemented new measures to assist financially distressed businesses and individuals to navigate the economic impacts of COVID-19, Mondaq reported. As expected, we have seen a drastic downturn in the filing of Wind Up Applications and Creditors' Petitions with the Courts, and the uptake of voluntary administrations. The number of Wind Up Applications filed between July and August 2020, as compared to July and August 2021, are down by 89% and Court Liquidations have also significantly decreased by 74%. Voluntary Administrations and Liquidations have also decreased, by 66% and 37% respectively as compared to the same July and August period last year. Read more