While insolvencies are down 4 per cent year on year overall, they increased for businesses with high ATO debts, retail trade and transport, postal and warehousing sectors, new findings reveal.
CreditorWatch’s research reveals that 21.9 per cent of businesses with ATO debts exceeding $100,000 in the last 12 months are insolvent, finding that the number of these impacted businesses has increased in recent months and was hardest hit in the last four months following the strengthening of tax collection activity following the COVID-19 pandemic.
In CreditorWatch’s June 2026 Business Risk Index, it said that this is of particular concern, as 53.8 per cent of these businesses are sole traders, which it noted: typically…