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Australia: New Small Business Insolvency Reforms How Statutory Demands will change from 1 January 2021

Extension of Temporary Statutory Demand Limits For a company that is eligible for temporary restructuring relief pursuant to the Corporations Amendment Act, and potentially up until 31 July 2021: the statutory minimum amount for service of a statutory demand will remain at $20,000; and the statutory period to respond to a statutory demand will remain at 6 months.3 Consequential amendments are made to the form for a statutory demand.  When is a company eligible for temporary restructuring relief ? The Corporations Amendment Act and Corporations Amendment Regulations include a concept of a company being eligible for temporary restructuring relief in circumstances where that relief has not been sought by the appointment of a small business restructuring practitioner.4

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