Changes made to bankruptcy threshold

Disclosure Statement: Durand Financial Services Pty Ltd and its advisers are authorised representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306. General Advice Warning: The information contained within this website does not consider your personal circumstances and is of a general nature only. You should not act on it without first obtaining professional financial advice specific to your circumstances.

Paul Osborne
(Australian Associated Press)


The threshold at which Australians in financial strife can be made bankrupt has been dropped to $10,000.

It was temporarily lifted from $5000 to $20,000 in March to give some breathing space to those impacted by the coronavirus pandemic downturn.

As well, from this week the amount of time an individual has to respond to a bankruptcy notice will be 21 days, reduced from six months.

And temporary debt protection will allow for 21 days of relief from creditors, instead of six months.

CommSec chief economist Craig James said the government was understandably unwinding some of its temporary support.

“But it is a sign of confidence on the economic recovery,” he told AAP.

“The government can’t leave support measures in place too long but if there are fresh signs of weakness in the economy these decisions can and should be quickly reversed.”


Like This