Submission: Increasing the statutory demand threshold
ARITA made a submission in the response to the Treasury’s discussion paper dated 15 February 2021 in relation to a potential increase in the statutory demand threshold beyond the current $2,000 debt value.
ARITA’s submitted that the Government should not increase the existing $2,000 statutory demand threshold on the basis that any solvent company should be able to pay an undisputed statutory demand if it is issued or else the company naturally fails the legal test of solvency of being able to pay all debts as and when they fall due.
This position was informed by the ARITA survey conducted in August 2020 prior to the Government’s further extension of the temporary increase in the threshold to $20,000 from 25 September 2020 to 31 December 2020, where 57% of our members who responded opposed any increase in the threshold at all, while only 16.7% supported a permanent extension of the threshold (whether to $20,000 or a lesser level).
Read ARITA's submission
Treasury’s consultation: Increasing the statutory demand threshold