The good faith defence under s 588FG(2) of the Corporations Act 2001 (Cth) must be assessed by reference to the circumstances at the time of each individual payment, not in a global fashion over the relation-back period. Service of a statutory demand will usually be a very relevant consideration indicating reasonable grounds for suspecting insolvency, but courts should recognise that some statutory demands are served as enforcement mechanisms against dilatory debtors of undisputed debts where there is no real spectre of insolvency. Countervailing factors such as the debtor's public financial reporting, media coverage, and a long trading history of late payment may be sufficient to dispel suspicion of insolvency at earlier payment dates.
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