Thresholds for statutory demands to increase
One of the early measures implemented by the Federal Government as part of its COVID 19 business relief package was changes to the statutory demand regime. Those measures saw the monetary threshold increased from $2,000 to $20,000, and the time to respond increased from 21 days to six months. Those temporary measures ended on 31 December 2020.
However, the Federal Government has now announced that as from 1 July 2021, the monetary threshold for the issue of a statutory demand will permanently increase from $2,000 to $4,000. The Government said this increase is to take account of inflation.
Moving forward, any statutory demands issued from 1 July need to be for at least $4,000, or they will be invalid.
If you have received or wish to send a statutory demand, please contact our Litigation team who can assist you.
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