COVID-19: Proposed changes to insolvency laws to support small business recovery
On 22 March 2020, the Federal Government announced temporary regulatory measures to help financially distressed businesses get through the COVID-19 pandemic and come out the other side. On 7 September 2020 an extension to that relief was announced, set to expire on 31 December 2020. The Government also announced a proposal for major reforms to corporate insolvency laws for incorporated businesses, with liabilities of less than $1 million, which are facing financial distress. The proposed major reforms are to support small business recovery after the expiry of the temporary COVID-19 insolvency law relief at the end of this year.