The Treasurer Josh Frydenberg has announced an extension of the temporary relief for financially distressed individuals and businesses contained in the Coronavirus Economic Response Package Omnibus Act 2020 (Cth) (Act) on 25 March 2020, and slated to expire of 26 September 2020.

The relief has been extended to 31 December 2020.

That means:

  1. The prescribed time within which a Bankruptcy Notice must be complied with is 6 months, and the minimum prescribed amount is $20,000 (Part 1 of Schedule 12 of the Act);
  2. The prescribed time within which a Statutory Demand must be complied with is 6 months, and the minimum prescribed amount is $20,000 (Part 2 of Schedule 12 of the Act); and
  3. Directors are entitled to take advantage of the safe harbour scheme, providing protection to directors from trading whilst insolvent (Part 3 of Schedule 12 of the Act).