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Fears business failure rates will SOAR in next three months when there is no JobKeeper to prop up zombie firms and stave off insolvencies.
Australian Securities and Investments Commission data shows insolvency fall This occurred despite the worst economic downturn since the Great Depression Bob Shields (Director at Standard8 Advisory) feared the March 28 end of JobKeeper and said “if you have overdue accounts, now is the time to get your money in”.
More lenient insolvency trading rules are also set to come to an end on April 1st. Insolvency rates have plunged despite the steepest economic downturn since the 1930s Great Depression sparking fears JobKeeper is keeping struggling firms on life support.
Accountants fear business failure rates will soar in April after JobKeeper wage subsidies end.
In November 2020 just 306 firms went into external administration compared with 748 in November 2019 before the first case of Covid came to Australia.
The national tally of insolvencies plunged by 59% during a year that saw the economy sink into a recession for the first time in 29 years.
Bob added “People have been holding off liquidating because they are entitled to JobKeeper and I think you'll find when their JobKeeper eligibility ends, you'll have this huge spike in insolvency numbers again.'
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For debts in excess of $2,000 Call today on 1300 999 787 www.standard8advisory.com.au
