CreditorWatch chief executive Patrick Coghlan said Victoria would be “even worse off” following Premier Daniel Andrews’ announcement on Sunday of a longer lockdown.
“It would’ve been extremely difficult and unpopular not to extend [insolvency safe harbour] but there was no choice from a political point of view in Victoria,” Mr Coghlan said.
He said the federal government “needs to work on a road out of the safe harbour provisions”, under which creditors are unable to issue statutory demands or bankruptcy notices unless the debt totals $20,000 or more. Directors are also protected from personal liability under insolvent trading rules if debts are incurred, except where they break the law.
Mr Coghlan warned the Christmas holiday perio…
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