Small business insolvencies are expected to worsen as Labor’s changes to negative gearing and capital gains tax slow the economy and eventually hit bigger corporations, a leading insolvency expert fears.
The Reserve Bank of Australia’s three interest rate rises this year have already worsened the rate of companies going into external administration for the first time.
The number of court-appointed administrators soared by 11 per cent to 3094 when the year to June 21 was compared to the corresponding period in 2025, Australian Securities and Investments Commission data on companies showed, as the tax office also cracked down on directors with unpaid debts.
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