Australian small business insolvencies rise to 19 per week
Key points
- Insolvencies in Western Australia reached 19 cases per week between June and September.
- Construction led industry failures with 679 insolvencies recorded since June 2022.
- Political debates intensify over whether federal tax policies or global economic conditions drive rising business costs.
Federal opposition leader Angus Taylor reported that Western Australian small business insolvencies surged to 19 cases per week between June and September, up from 14 cases per week recorded between 2022 and mid-2023.
The total number of insolvencies in the state reached 323 during the June-to-September period as business owners faced rising power bills, higher taxes, and regulatory compliance costs.
“Everywhere I go, I hear the same thing from small business owners – they can’t afford Labor’s higher taxes, they can’t afford Labor’s higher power bills, and they can’t afford the additional costs of complying with all of Labor’s new red tape,” said Shadow Treasurer Angus Taylor.
Data from the Australian Securities and Investments Commission showed construction suffered 679 failures since June 2022, followed by accommodation and food services with 473, mining with 237, and manufacturing with 174.
Government representatives stated that global conflicts, higher interest rates, and external inflation pressures weighed heavily on national economic growth and household budgets.
The Australian business sector previously experienced five interest rate increases this year, alongside reduced growth forecasts and tightening credit conditions across major commercial sectors.