Guerra said some medium and large businesses were also struggling with high land and payroll taxes and Workcover premiums, warning the added pain would ultimately be passed on to consumers. He urged the government not to impose new taxes in the upcoming May budget.
“If they can’t pass that on, then it starts to impact their profitability, and if they’re being squeezed by supply chain costs and staff costs, it just adds to their inability to get through. They cannot absorb increases in taxes.”
The rise in insolvencies coincided with 13 consecutive interest rate hikes over about 18 months, with the Reserve Bank lifting its cash rate from a historic low of just 0.1 per cent in May 2022 to 4.35 per cent by November last year as part…
