Projections from SM Solvency Accountants show nearly 16,000 businesses will enter external administration in 2021 when economic support from the federal government stops. 

SM Solvency Accountants partner Brendan Nixon said the financial support has been a double-edged sword with many insolvencies backlogged.

“That will at least cause what we think to be a doubling of the numbers … in 2021.

But Mr Nixon said the government has made changes to prevent many businesses from being forced into a full liquidation.

“It’s introducing a couple new insolvency types as of January 1: a simplified liquidation process and a new debtor restructuring process.

Mr Nixon urged business owners to contact experts to understand these new options for dealing with debts.

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