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4. Boost Cash Flows
i) ATO COVID-19 page for business
5. Insolvency: The Australian Federal Government has passed temporary amendments to insolvency and corporations law; Coronavirus Economic Response Package Omnibus Act 2020
i) Corporations – The minimum threshold for Statutory Demands for payment issued to companies have been increased from $2,000.00 to $20,000.00 and the time to pay has been temporarily extended from 21 days from the date of service to 6 months.
ii) Individuals- The minimum threshold for bankruptcy notices for payment issued to individuals have been increased from $5,000.00 to $20,000.00 and the time to pay has been extended from 21 days from the date of service to 6 months.
iii) Trading whilst Insolvent- Directors have been temporarily afforded a safe harbour provision which provides “temporary relief due to coronavirus” from personal liability for any debts incurred whilst the business is insolvent; new section 588GAAA into the Corporations Act 2001 (Cth). Importantly, this is only in relation to debts incurred in the ordinary course of business and during the six month period.