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Amendments to the Corporations and Bankruptcy Acts – including the relaxation of insolvent trading laws for six months – have delayed business insolvencies and related personal bankruptcies during the COVID-19 crisis.
These rules, alongside massive emergency income support and debt repayment deferrals, have seen personal insolvencies plunge to record low levels:
Whereas the number of companies entering administration also plunged to less than 50% of ‘normal’ levels:
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.