It is the view of Small Business Australia that personal insolvency or bankruptcy caused by the public health crisis response should not be subject to the existing Australian insolvency and bankruptcy laws and regulations. While some temporary measures have delayed the onset of the ability of creditors to trigger debt recovery actions, these changes to policy provide only limited protection and little peace of mind to small business owners.
In survey’s conducted by News Corporation’s online publications, by Small Business Australia and by ACA Research, over 80% of surveyed business owners want the protection of their businesses, their personal finances and reputations through a form of COVID Business Closure.
A COVID Business Closure is NOT equivalent to the existing legal insolvency or bankruptcy approach and can be simply implemented by the Federal Government. A COVID Business Closure would facilitate a fair and rapid finalisation of an existing business, in circumstances where the owner and creditors share the financial pain, with and the owner when ready in the future being able to get started in business again without the legal and emotional costs of being made legally bankrupt.