Other Federal government measures
Other government measures to assist financially distressed individuals and businesses include:
- temporarily increasing from $5,000 to $20,000 in the minimum amount of debt required to be owed before a creditor can initiate involuntary bankruptcy proceedings against a debtor;
- temporarily extending the time for a debtor to respond to a bankruptcy notice from 21 days to 6 months; and
- temporarily extending from 21 days to 6 months the timeframe in which a debtor is protected from enforcement action by a creditor following presentation of a declaration of intention to present a debtor’s petition.
The government will also enter into risk-sharing agreements with financial institutions to ensure that credit continues to flow to small and medium enterprises so they can continue to meet their immediate financing needs during the uncertain economic conditions caused by COVID-19.
The government also announced that individuals may access their super if adversely affected by COVID-19 (up to a maximum of $20,000 in 2 instalments) and a reduction by 50% in the minimum annual payment required for certain pensions and annuities.
Ref: TaxWise Business April 2020