CPA Australia and CA ANZ have both opposed an increase in the default bankruptcy threshold from $10,000 to $20,000 in responses to the Attorney-Generals personal insolvency discussion paper.
In its submission CPA Australia said the proposal would fail to alleviate cost-of-living pressures.
For many, mortgage stress is their leading financial concern. The amount of such debt is generally significantly higher than the proposed bankruptcy threshold, the submission said.
While cost-of-living pressures are front-of-mind for many Australians, we are not seeing any data suggesting a surge in personal insolvencies. The recent increase in bankruptcies shows them returning to their pre-Covid long-term average. We dont expect that number to mate…
Read the full article at: https://www.accountantsdaily.com.au/regulation/19159-accounting-bodies-oppose-increase-to-bankruptcy-threshold