The firm has outlined early signs of insolvency risk and how businesses can change course when facing cash flow issues.
Since the 2022 financial year, insolvency rates have increased year on year, driven by high operating costs and a return to stronger tax debt enforcement by the ATO, following its relatively lenient approach during the pandemic.
There were 13,089 insolvencies in the financial year to May 2025 – up 31 per cent from the same period in the year prior, ASIC data showed.
The Reserve Bank said the current insolvency highs represented a ‘catch up’ effect after a period of unusually low insolvencies during the pandemic.
“The share of companies entering…
