Insolvency firms are preparing for a spike in the number of companies going broke at the end of this month
The government is thinking of pushing back the deadline to allow companies to trade while insolvent beyond September 30, sparking a debate over how long to continue federal support to struggling companies., insisting the rate would have to fall. Labor has argued against a "tapering" in the JobKeeper rate when it had backed the concept in recent weeks.
While some employers that have been protected will recover, CreditorWatch chief executive Patrick Coghlan warned there were about 2500 businesses that were no longer viable being kept afloat by the rules.," Mr Coghlan said. "The typical year has between 8000 and 9000 administrations and we are more than a quarter behind this rate. We're certainly not through this yet," Mr Coghlan said.
Mr Frydenberg said on Wednesday the government was "now considering an extension of those temporary [insolvency] arrangements, recognising that they have supported the economy through a difficult time".
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