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Changes to Covid-19 relief ending 31 December 2020

Author: Zac Herps
2 min read
07 December 2020
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Key Takeaways

  • In 2021 and moving forward, it will be pivotal for all businesses to have an effective strategy for dealing with debtors and tenants.
  • If you have benefitted from a deferred rent arrangement it is important to note that your deferred rent may be payable from 1 January 2021 and protections you may have enjoyed (such as relief against forfeiture) may no longer be available to you.
  • Working alongside our corporate commercial clients, we help to not only minimise your risk on the front-end of transactions, but also to maximise recovery prospects with the minimum of costs when recovering debt on the back-end.

While everyone may be breathing a sigh of relief that 2020 is almost over, it is important to consider what the start of 2021 may look like for you and your business. A lot of businesses have benefitted via various forms Covid-19 relief including protections and amnesties. However, with various protections ending on 31 December 2020, there is potential for the start of 2021 to be highly litigious. If you have been prevented from recovering debts, or if you have been protected from paying debts/rent, as a result of the Covid-19 relief, it is important to get in touch with us before 1 January 2021 so that we can help to ensure your house is in order and you are starting 2021 on the best foot possible.

Below are some articles which you may find useful to consider leading into 2021:

  1. What The Retail Shop Leases And Other Commercial Leases (COVID-19 Emergency Response) Regulation 2020 Means To You; https://www.hillhouse.com.au/blog/david-adolphe/what-the-retail-shop-leases-and-other-commercial-leases-covid-19-emergency-response-regulation-2020-means-to-you
  2. How to manage your debtors list; https://www.hillhouse.com.au/blog/craig-hong/reducing-your-list-of-debtors-could-help-you-avoid-becoming-an-insolvency-statistic
  3. What some of your options are when clients just won’t pay; and https://www.hillhouse.com.au/blog/post/34
  4. Why ‘principal’ should trump ‘principle’;https://www.hillhouse.com.au/knowledge/its-the-principal

In 2021 and moving forward, it will be pivotal for all businesses to have an effective strategy for dealing with debtors and tenants. Unfortunately, carrying debtors is a commercial reality of trade for most businesses. That being said, if you have the right policies and procedures in place, you can maximise your prospects of recovery and hopefully prevent yourself from the cash flow burden that results from poor debtor management and long/ non-payment.

If you have benefitted from a deferred rent arrangement it is important to note that your deferred rent may be payable from 1 January 2021 and protections you may have enjoyed (such as relief against forfeiture) may no longer be available to you. While your repayment obligations may be different if you have entered into a rent relief deed it is important to get in touch to clarify how your obligations may be changing and make sure you are prepared for the new year.

Working alongside our corporate commercial clients, we help to not only minimise your risk on the front-end of transactions, but also to maximise recovery prospects with the minimum of costs when recovering debt on the back-end.

If you want to find out more about our expertise in debt recovery, property disputes and insolvency, please download our Capability Statement here or contact us.

If you have any questions or if we can assist you in the recovery of debt or rent or if you wish to ensure arrangement you have made protect you and your business moving forward please contact Zac Herps for more information or an obligation free discussion.

The information in this blog is intended only to provide a general overview and has not been prepared with a view to any particular situation or set of circumstances. It is not intended to be comprehensive nor does it constitute legal advice. While we attempt to ensure the information is current and accurate we do not guarantee its currency and accuracy. You should seek legal or other professional advice before acting or relying on any of the information in this blog as it may not be appropriate for your individual circumstances.

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