The Bankruptcy Amendment (Bankruptcy Threshold) Regulations 2020 have been registered.

This instrument permanently amends the Bankruptcy Regulations 1996 from 1 January 2021 to prescribe an amount of $10,000 as the statutory minimum bankruptcy threshold under the Bankruptcy Act 1966.

On 24 March 2020, the Bankruptcy Regulations 1996 (the Bankruptcy Regulations) were amended by the Coronavirus Economic Response Package Omnibus Act 2020 to prescribe a temporary bankruptcy threshold of $20,000 in response to the Coronavirus pandemic, up from the previous threshold of $5,000. This temporary bankruptcy threshold will cease on 31 December 2020.

The new bankruptcy threshold of $10,000 applies to bankruptcy notices issued, or creditors’ petitions presented, on or after 1 January 2021.

No changes have been made to the consequences of bankruptcy.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.