Tasmania’s best and worst places to do business revealed

A new report has revealed the best and worst Tasmanian regions to do business in – and the results are not what you might expect.

A new report suggests northeast Tasmania and Burnie – Ulverstone are the best places in the state to do business, while the worst is Devonport, with nearly one-in-twenty businesses in that region going bust over the past 12 months.

The information comes from credit reporting agency CreditorWatch’s June Business Risk Index, which showed that, nationally, business confidence is “teetering”.

“We continue to see a disturbing rise in trade payment defaults, our leading indicator for future business insolvencies,” said chief executive Patrick Coghlan.

“Court actions are also back to pre-Covid levels, reflecting that the banks are back to their regular collection activity after the ‘loan holidays’ that they provided during the peak of the pandemic.”

According to the report, northeast Tasmania, Burnie–Ulverstone and Launceston are the best areas in the state to do business, with only 3.4 per cent, 3.01 per cent and 3.96 per cent of businesses in these statistical areas respectively defaulting in the past 12 months.

Meanwhile, businesses in inner Hobart were more likely to default (4.45 per cent) than in Hobart’s northeast (4.34 per cent).

Devonport, meanwhile, had a default rate of 4.65 per cent – Tasmania’s highest.

All rates of default are projected to increase over the next 12 months, with Burnie–Ulverstone’s expected to grow by 1.67 per cent, albeit off a lower base, with the increase projected to be lowest in inner Hobart (0.27 per cent).

All statistical areas in Tasmania were well below the national default average, which stands at 5.8 per cent.

A CreditorWatch representative said Tasmania performed “strongly” compared with other states.

“Tasmania consistently ranks lowest for the probability of default among all states and territories,” the representative said.

“This can be attributed to several factors including Tasmania’s comparatively low commercial rents, the high number of agricultural and fishing businesses (traditionally stable businesses) and the positive bounce-back in tourism since the Covid-induced dip.”

According to the report, food and beverage, arts and recreation and education and training are the industries most at risk of insolvency, while healthcare and social assistance, agriculture, forestry and fishing and manufacturing the industries least at risk of default.

Launceston and northeast Tasmania, two of the strongest regions in the report, have seen a spate of new business openings in the past few months, including San Churro Chocolateria, Delicia Acai, Adultshop.com, Pinot & Picasso (all Launceston CBD), Bayleaf Brew (Scottsdale) and Bridport Distilling Co.

There's plenty more to come for Launceston too, with Du Cane Brewery and Dining Hall (Princes Square), Hokkaido Sushi (Brisbane Arcade), Tatler Arcade and FermenTas Legana all at various stages of progress.