Key Takeaways

The Federal Government has today announced that the temporary changes introduced in March to Australia’s insolvency laws as a response to the impacts of COVID-19 will be extended until 31 December 2020.

Criticised by some as not doing enough to assist creditors seeking repayment of outstanding debts, these temporary changes seem to have been effective in slowing insolvencies to date. However, the changes could have the effect of ‘kicking the can down the road’ and increasing the looming avalanche of insolvencies expected in 2021.