Extension of the temporary relief for financially distressed businesses
Today the Federal Government announced an extension of the temporary relief for financially distressed businesses.
Under this extension:
- If you owe less than $20,000 to a creditor, the creditor can’t issue a statutory demand for repayment of the debt, till 1 January 2021 at the earliest.
- If you do owe someone over $20,000 and they issue a statutory demand for repayment of the debt prior to 1 January 2021, you have 6 months:
- to pay the debt; or
- come to a suitable arrangement with the creditor; or,
- make an application to set the demand aside.
- There is relief from personal liability for insolvent trading in respect to debts incurred in the ordinary course of the company’s business between 25 March and 31 December 2020.
But note this relief, does not affect the other duties and potential liabilities of business owners such as:
- Acting in good faith in the best interest of the company and for a proper purpose.
- Acting with due care, skill and diligence.
- Not using their position as director, officer or employee to gain an advantage for themselves or someone else, or cause detriment to the company.
If you need some help to develop your Safe Harbour action plan to protect your business and personal assets such as your house, just contact me below
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Contact Wayne Wanders for to see if you can access the Safe Harbour Laws
To ensure I help your business specifically, the best approach I have found is to have an obligation free session with you. In this session we will review your current business in a factual and objective manner, to better understand the challenges that you face. And this session does not need to be face to face.
At the end of this session, you will have some clarity around whether you can access the Safe Harbour Laws..
Simply fill in the contact form below or email me at wayne@aRealCFO.com.au or call me on 0412 227 052 to organise one of these obligation free sessions.
To get help you successfully navigate your way through your financial challenges so your business can survive and thrive in these uncertain times, simply use the contact form on the left to email Wayne or call him on 0412 227 052.
We promise to keep your email address safe.
Let Wayne Wanders, a fully qualified and experienced CFO, help you successfully navigate your way through your financial challenges so your business can survive and thrive in these uncertain times.
Wayne Wanders, A Real CFO
wayne@aRealCFO.com.au
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