“A lot of SMEs will be ineligible to use the new scheme and that might mean that the only option is to go into liquidation.”
Clayton Utz restructuring and insolvency partner Jennifer Ball said the initial requirement to pay employee entitlements could be an “obstacle” for small firms.
The current temporary director insolvency measures which are extended to the end of the year would in effect be prolonged to March 31, 2021, for small firms taking advantage of the newly announced insolvency regime.
“This would coincide with the deadline for ending JobKeeper and bank loan repayment deferrals,” Ms Ball said.
Once you consider financing debt and leases there will be few businesses coming in under the million-dollar mark.
Justin Walsh, part…
Read the full article at: https://www.afr.com/politics/federal/worker-payments-an-obstacle-to-saving-thousands-of-company-failures-20200924-p55yuw
