Reserve Bank governor Philip Lowe, right, and deputy governor Guy Debelle…the bank warns bankruptcies will increase next year.Alex Ellinghausen
Emergency measures such as JobKeeper, cash flow payments from the Australian Taxation Office and a temporary freeze on director liability for insolvencies will roll off between January and March.
If the estimated 3 per cent fall in business revenue late in 2019-20 fails to recover, annual business revenue would plunge a further 9.5 per cent in 2020-21, according to the RBA analysis.
This would cause an extra 5200 firms to fail, on top of the typical 15,000 to 20,000 business closures each year in Australia, both via insolvency and voluntary exits.
“However, business failures will rise subs…
Read the full article at: https://www.afr.com/policy/economy/rba-sees-rising-business-bankruptcies-20201009-p563ky
