Business failures on the rise with Labor placing blame on the state government

The number of business insolvencies in Tasmania has jumped, outpacing a national trend.

Labor's Josh Willie speaks to the media on the Hobart waterfront on Tuesday, January 21, 2025.

The number of business insolvencies in Tasmania has jumped, outpacing a national trend, Labor shadow treasurer Josh Willie says.

New data from the Australian Securities and Investments Commission showed the number of Tasmanian businesses going bust had increased five-fold compared to two years ago.

The ASIC data shows that during the first half of the 2024/25 financial year, 64 Tasmanian businesses entered external administration or had a controller appointed.

“That’s a 481 per cent increase for the same period just two years ago when 11 insolvencies were recorded for the same period, and by far the worst result in any state, with Victoria recording the second-highest increase of 110 per cent,” Mr Willie said.

Labor's Josh Willie.

“It’s no secret that insolvencies have gone up across the country, but the data clearly shows Tasmania is on a different level and the Liberals can’t be trusted with the Tasmanian economy.

“Since Premier Rockliff took his government into minority, insolvencies have gone up by nearly 500 per cent and more than 8,700 jobs have been lost. That’s a fact.

“Business insolvencies mean that Tasmanians lose their jobs.”

Minister for Business, Industry and Resources Eric Abetz said the data reflected a national trend.

“It’s no secret that businesses across the country are facing significant economic pressures, with national headwinds impacting every state and territory,” he said.

“Despite these challenges, the Tasmanian Liberal Government remains focused on delivering real outcomes for local businesses.

“Our Buy Local Policy and ongoing efforts to cut red tape are driving growth, fostering innovation, and encouraging investment across the state.

“Tasmania is outperforming much of the nation, yet instead of supporting local businesses, Josh Willie seems determined to talk them down.”

Minister for Business, Industry and Resources Eric Abetz.

Nationally, business failures surged by 50 per cent this financial year as elevated operating expenses coupled with cost of living pressures and an aggressive crackdown on unpaid debt by the tax office force companies to close.

Last year’s record high of 11,053 is expected to be smashed over coming months, with insolvency appointments forecast to reach up to 16,000 this financial year, even if the Reserve Bank cuts interest rates.

Figures from the Australian Securities & Investments Commission show 7483 insolvency appointments occurred in a record-breaking six months to December 31, a 47.1 per cent increase on the 5088 appointments a year earlier, and almost as much as the 7942 appointments in the entire 2023 fiscal period.

The past financial year had a record 11,053 insolvencies, exceeding the previous high set in 2012.