Corporate insolvency has been on a steady rise since the government’s COVID-19 support measures ended, and forecasts indicate that this trend will persist amid ongoing economic challenges.
Business failures have hit the construction, accommodation and food service sectors the hardest.
From July 2023 to June 2024, ASIC reported a significant increase in company insolvencies, jumping by 35.5% compared to the same period a year earlier, and totalling 10,769 cases. As insolvencies are projected to increase further, it’s crucial to understand the signs and take proactive steps to prevent failures.
Why are insolvencies on the rise?
According to the ASIC FY2024 annual statistics, inadequate cash flow or excessive cash…
