Construction, retail, and hospitality feel the strain
The strain was uneven across industries. Construction recorded a 114% jump in large business exits and a 58% rise in small business exits, alongside a 43% increase in new tax default disclosures and a softening in on-time trade payments. Retail saw insolvencies climb across both large businesses and SMEs, with new ATO default filings up 54%, even as the sector posted the strongest on-time payment performance of any industry measured. Hospitality’s large business exits rose 106% YoY, though company and business insolvencies in the sector both fell.