Thousands of Businesses to Hit the Wall Unless Insolvency Supports Extended

Thousands of employers are forecast to fail within weeks in a new sign of the pressure on jobs as the Morrison government promises a budget plan to lift the economy out of recession, The Sydney Morning Herald reported. Insolvency firms are preparing for a spike in the number of companies going broke at the end of this month, when safe harbour rules introduced in March to help businesses hibernate through lockdowns are due to end. The government is thinking of pushing back the deadline to allow companies to trade while insolvent beyond September 30, sparking a debate over how long to continue federal support to struggling companies. Prime Minister Scott Morrison hit back at Labor on Thursday over the government's plan to reduce the JobKeeper wage subsidy while extending the payments until March, insisting the rate would have to fall. Read more