Why the temporary safe harbour may be ineffective

If your business is currently in financial distress, a misplaced 3 letter word in the legislation may mean the temporary safe harbour may be ineffective. As a result, your personal assets such as your house are at risk.

Pre Covid-19, if your business traded whilst insolvent, you as the director may have been personally liable for the debts of the business. As such, business creditors may force you to sell your home to pay back the debts.

With the start of Covid-19, the government attempted to create a temporary safe harbour with the suspension on the ability of creditors to access your personal assets.

But a simple misplaced “and” in the legislation may mean this temporary safe harbour is ineffective.

As a result of this seemingly misplaced “and”, you, as the director of the business may be personally liable for debts that the business has incurred during the Covid-19 period.

Now various parties are trying to get this rogue “and” removed, but who knows if this will actually occur before 1 Jan 2021.

Hence why, if you are currently in financial distress, it is imperative that you get appropriate advice asap to:

determine if you are trading insolvent; and
If you are trading insolvent, what can you do about it.

If you want a confidential discussion on your business situation, contact me below

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Contact Wayne Wanders for your FREE Business Survival Session

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 multiple ideas on how your business can survive and thrive in these uncertain times.

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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