The reduction in repayment terms to three years from five had cut debt agreements by “an order of magnitude”, forcing hardship on debtors and short-changing creditors said the Personal Insolvency Professionals Association (PIPA).
Spokesman for the body Ben Paris said the resumption of debt collection by the ATO was forcing more company directors and small businesses to the brink.
“There is an urgent need for debt agreement reform as subcontractors and other sole-traders hurtle off an insolvency cliff,” Mr Paris said.
Shared from Accountants Daily
