The number of business insolvencies boomed in late 2023 and is poised to accelerate in 2024, official data shows, but industry professionals say the growing use of the small business restructuring scheme is a silver lining.
Data released by the Australian Securities and Investments Commission (ASIC) on Tuesday shows 727 companies entered external administration or control in December last year, a 16% jump from December in 2022.
At the time of writing, 5,020 companies have collapsed so far in the 2023-2024 financial year, setting a trajectory for more than 10,000 by July — a figure that would eclipse the 2022-2023 total of 7,942.
If the increase continues, more companies will enter external administration or control in 2023-2024 than…
