Insolvencies rise as economic pressures mount | The Business | ABC NEWS
Small-to-medium sized businesses have had a challenging year, after facing rising fuel prices, interest rates and inflation on top of regulatory reforms such as pay day super, changes to credit card surcharges and the abolition of junior pay rates.
It comes as consumer sentiment tanks.
Credit agency Equifax said overall the SME sector is resilient but there are pockets of distress. While starting from a low base, small business insolvency rates are starting to tick upward with a 13 per cent increase in the number of businesses going bust in the six months to May 2026 compared to the same period last year.
More businesses are also pulling up stumps, with business exit rates on the rise and firms taking longer to pay suppliers.
Equifax’s Brad Walters says there has been an increase in credit shopping among high-risk small to medium businesses, meaning owners are having trouble getting loans.
This includes businesses in the construction, manufacturing, transport and logistics industries, or those with low liquidity.
The small business council is seeking more governmental support such as raising the tax threshold for the instant asset write-off.
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