Victorian manufacturers had highest number of insolvencies in 2024

Victoria had the highest number of manufacturers going bust in 2024, new analysis shows, as businesses struggle with high taxes, energy costs and red tape.

Victoria had the highest number of manufacturers going bust in 2024, new analysis shows.

And more businesses are shutting up as the state’s manufacturing heartland suffers from high taxes, energy costs and red tape.

Insolvency data shows at least 415 Victorian manufacturers have collapsed during the Albanese government’s time in office – the second largest nationwide.

Opposition industry spokeswoman Sussan Ley claimed Labor’s industry policies were “failing” and putting Victorian jobs at risk.

“Victoria is a great state and has manufacturers which have the potential to not only compete globally but lead the world, but Labor’s taxes, red tape and economic failures are crushing them,” Ms Ley said.

“Anthony Albanese and (Industry Minister) Ed Husic need to answer why their National Reconstruction Fund has failed to save a single Victorian job despite surging insolvencies.

“Anthony Albanese and (Victorian Premier) Jacinta Allan are failing Victorians and it has to stop. Enough is enough.”

Deputy Leader of the Opposition Sussan Ley. Picture: Martin Ollman

Australian Securities and Investments Commission data shows almost 1390 manufacturers nationwide have gone insolvent since 2022-23.

NSW had the largest number of insolvencies with at least 490 companies entering external administration this parliamentary term.

Victorian manufacturers made up almost one in three closures nationwide with 415 companies going bust.

The state had the highest number of insolvencies of any jurisdiction last year at 223 companies.

Ms Ley also questioned why only one of the seven investments made under the National Reconstruction Fund was in Victoria.

This was a $13m investment in a world-leading advanced manufacturing facility, where lab-made diamonds will be used for quantum computing.

Industry groups and unions have sounded the alarm about the operating environment for Australian businesses and demanded governments address the “crisis”, amid “serious concerns” Labor’s Future Made in Australia plan lacks “specific support for domestic manufacturing”.

The warning follows the collapse of the nation’s only architectural glass maker, Dandenong South-based Oceania Glass, which entered administration last week putting 260 jobs at risk.

Industry and Science Minister Ed Husic. Picture: Martin Ollman

Industry Minister Ed Husic told the parliament on Tuesday that the government was focused on rebuilding manufacturing capability, adding it was important for Australia’s economic and strategic interests.

“We need to be able to stand on our own two feet and not be dependent on broken and concentrated supply chains, only relying on a handful of nations for the things that are really important to our country,” Mr Husic said.

“It’s why we stood up the National Reconstruction Fund.

“The Libs and Nats don’t support the resources sector and manufacturing … they have nothing to offer the Australian public except negativity, no plans, no care.”

Mr Husic, who will on Wednesday address the National Press Club, will reinforce that Australia needs to bolster its approach to research and development and make it a national asset.

The push comes after a review of the system found Australian research was most often being developed into globally transformative technologies by other countries, with Australia then adopting them at a higher cost.

Originally published as Victorian manufacturers had highest number of insolvencies in 2024