“The insolvency moratorium created longer-term risks by propping up zombie businesses, putting creditors at significant disadvantage, and threatening the future of viable businesses,” Mr Dale said.
“That created an environment where businesses were racking up debt with an inability to pay it. That was never the appropriate business environment to carry into 2021.”
Since the COVID-19 crisis, emergency measures such as JobKeeper, JobSeeker, bank interest deferrals, insolvent trading relief and a more lenient Tax Office, have led to fewer bankruptcies and company failures, making it harder for debt collection outfits to recover debts.
Exposing an underlying truth
The government supports, particularly temporary insolvency relief, are estima…
Read the full article at: https://www.afr.com/politics/federal/time-to-let-zombie-businesses-die-20201231-p56r2j
