Often people with tax debts have no choice other than to go bankrupt. Bankruptcy currently lasts for three years, unless extended by a person’s bankruptcy Trustee.
The Federal Government had previously introduced legislation to shorten the period of bankruptcy from three years to one year.
The legislation had broad support and it had been recommended to be passed by a parliamentary committee formed, subject to certain minor amendments. However, the legislation introduced to parliament has lapsed, meaning it can’t be considered. Therefore, if the period of bankruptcy is to be shortened, new legislation will have to be introduced and passed.
We are currently unsure what the Government intends to do with this issue and will provide a further update once intentions are known.
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If you or your business have a tax debt and you would like to consider all the options, which may be available, the professionals at TAX DEBT SOLVED can help with a free, no-obligation consultation, contact us here.