ARTICLE · 03 DECEMBER 2022

Increased insolvencies call for greater collaboration

Bartier Perry Solicitors

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ASIC data indicates that insolvencies have increased since COVID-related subsidies and protections were discontinued.

AustraliaInsolvency/Bankruptcy/Re-Structuring

Gilbert Olzomer

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Recent data from the Australian Securities and Investments Commission (ASIC) has proved what many of us suspected - that insolvencies are on the rise - in some industries almost threefold.

With most Covid-related business subsidies and protections a thing of the past (at time of writing), it is now clear that insolvencies are on the rise. According to ASIC, 305 NSW companies entered external administration or had a controller appointed in September 2022. This figure back in September 2021 (the height of a Sydney pandemic lockdown) was 109.

Reasons for the increase in insolvencies include:

the Australian Taxation Office resuming enforcement of federal taxation debts
government Covid stimulus and protection measures (such as the 6-month period for compliance with a statutory demand) having ended

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