25 March 2020
COVID-19 presents the greatest challenge a generation of corporate managers will see in their lifetime.
This is not the first time the Australian economy has stared down the barrel of a severe economic downturn, but it is the first time the economic conditions that previously underlined robust business models have evaporated overnight due to a public health crisis.
Labour, one of the critical factors of production, is at risk of harm, which in turn has seen demand crushed in many industries which have recently spearheaded growth in our national economy, such as tourism, education and entertainment.
All this has come at the end of a devastating drought and bushfire season and a period of unprecedented growth in household and corporate debt. Flat wage growth and declining household savings have contributed to the ‘perfect storm’ in consumer confidence.
Recent legislative changes can provide relief, but it is critical to first identify whether there is a problem at all.
You can access a copy of Solvency issues in the face of COVID-19 here, or click the ‘DOWNLOAD PDF’ button.
This article is part of our insight series COVID-19: Navigating the implications for business in Australia and beyond. To get notified by email when new COVID-19 insights are released, please subscribe for updates here.
The content of this publication is for reference purposes only. It is current at the date of publication. This content does not constitute legal advice and should not be relied upon as such. Legal advice about your specific circumstances should always be obtained before taking any action based on this publication.