The minimum threshold at which creditors can issue a statutory demand on a company could rise by five times from its current amount as the Treasury considers aligning it with the personal bankruptcy threshold.
The Treasury is now consulting on whether the current monetary threshold at which a statutory demand can be issued by a creditor should remain at $2,000 or be permanently raised to a higher amount.
The $2,000 threshold has been in place since 1992 and has not kept up with inflation.
The only time the threshold has been raised was in response to the economic impact of COVID-19 last year when it was increased to $20,000 up until 31 December 2020.
The Treasury believes there is merit in permanently raising the threshold to $10,000 …
Read the full article at: https://www.accountantsdaily.com.au/business/15351-treasury-considers-five-fold-increase-to-statutory-demand-threshold
