Why it matters: CBA holds significant data on the health of Australian business
The bank says aggressive action from tax authorities is leading to insolvency
The tax office started 476 wind-up proceedings in the first seven months of 2023
The Australian Taxation Office is driving a bump in insolvencies and corporate stress as it chases $30 billion in debt from small and medium businesses, Commonwealth Bank executive Michael Vacy-Lyle says.
Mr Vacy-Lyle, who heads CBA’s business banking division, told The Australian Financial Review that “without a doubt” stress was increasing among his smaller clients as cost-of-living pressures slowed consumer spending.
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Lucas Baird is a journalist based in The Australian Financial Review's Sydney office. Connect with Lucas on Twitter. Email Lucas at lucas.baird@afr.com
Max Mason covers insolvency, courts, regulation, financial crime, cybercrime and corporate wrongdoing. A Walkley Award winner, Max's journalism has also received awards from the National Press Club of Australia, the Kennedy Awards and Citibank. Message Max on Signal https://tinyurl.com/MaxMason Connect with Max on Twitter. Email Max at max.mason@afr.com
James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay Connect with James on Twitter. Email James at jeyers@afr.com.au
