More than 1300 businesses go insolvent in the last month across Australia

The amount of businesses that went bust last month was the highest number on record, it has led to criticism of the management of the nation’s economic health.

More than 1300 Australian businesses went bust last month - the highest number of insolvencies in a single month on record - in a concerning sign of the nation’s dwindling economic health.

National insolvency figures from the Australian Securities and Investments Commission (ASIC) revealed construction and hospitality were some of the hardest hit sectors.

With construction material and labour costs through the roof and a skill shortage, 353 construction businesses went bust in October alone while 224 hospitality businesses were declared insolvent.

NSW fared the worst across the nation, with 513 businesses going under, followed by 408 in Victoria and 278 in Queensland.

South Australia lost 58 businesses, another 77 went under in West Australia and 10 in Tasmania.

The opposition claims the data blows apart Treasurer Jim Chalmers’ claim last week “the process we have made since July 2022 is clear”. Picture: NewsWire / Martin Ollman

The data is another headache for Anthony Albanese. Picture: NewsWire / Martin Ollman

The Coalition is using the figures to undermine the Albanese government’s economic record ahead of the final sitting week of the year.

It marks another bad month in a year where insolvencies have continued to grow.

Opposition deputy leader Sussan Ley said the data blows apart Treasurer Jim Chalmers’ claim last week “the process we have made since July 2022 is clear”.

“This data shows that when it comes to the Australian economy things are getting worse, not better, the number of business insolvencies has accelerated not slowed,” Ms Ley said.

“Instead of delivering a proper plan to address the structural issues killing Australian businesses the Prime Minister is more focused on his housing arrangements in retirement and the Treasurer is busy working up his next Sunday media drop – where is the economic leadership?

“Labor loves to talk about a ‘wasted decade’, well in just three years of, Labor Government thousands and thousands of Australian businesses that survived a pandemic have gone to the wall. How can anyone look at these numbers and take anything Labor says on the economy seriously?”

Deputy Leader of the Opposition Sussan Ley pointed the finger of blame at the government’s economic management. Picture: NewsWire / Martin Ollman

A government spokesman said they were doing what they can to ease pressure on small businesses.

“We know small businesses are under the pump, with higher interest rates and global economic uncertainty weighing heavily on our economy,” they said.

“We’re doing what we can to ease pressure on small businesses, including by rolling out energy rebates and extending the $20,000 instant asset write off. “Our economic plan is all about fighting inflation without ignoring the risks to growth, and while there’s more to do we’re making progress.”

It’s understood the average number of insolvencies as a proportion of companies is lower under the Albanese Government than the Howard, Abbott, Turnbull and Morrison.