According to data published by ASIC, only 4,751 businesses in Australia appointed insolvency practitioners in the last nine months of 2020, compared with 8,628 during the same period in 2019.
More importantly, insolvency experts do not expect a surge in businesses going into administration following the end of the JobKeeper scheme, citing factors such as the domestic economy’s fast recovery from the coronavirus-induced recession and the temporary insolvency protections for company directors.
Michael Sloan of law firm Ashurst has told The AFR that any increase in insolvencies is likely to be gradual:
