Western Australia Sees 42% Surge in Business Closures – How to Protect Your Business

Small Businesses Under Pressure as Insolvencies Reach Record Highs

Western Australia has seen a staggering 42% increase in business insolvencies, with over 1,000 businesses shutting down between January and December last year. This dramatic rise, revealed by recent ASIC data, highlights the severe financial distress faced by business owners across the state.

The construction and hospitality sectors have been hit the hardest, accounting for nearly a third of business failures. Rising interest rates, reduced consumer spending, and supply chain challenges have created a perfect storm, leaving many businesses struggling to stay afloat.

Liberal Senator Dean Smith, who analysed the figures, warned that business insolvencies often extend beyond just the owners. “Many small businesses are backed by personal assets, including family homes. When businesses collapse, it places enormous financial strain on households,” he said.

Despite recent interest rate adjustments, experts predict insolvency numbers will peak by mid-year, signaling continued economic uncertainty. Business owners are being urged to take proactive steps in assessing their financial stability and exploring restructuring options before it’s too late.

At Boa & Co. Chartered Accountants, we specialize in helping businesses navigate financial distress, implement recovery strategies, and explore restructuring options. If you’re concerned about your business’s financial health, don’t wait until it’s too late. Contact us today at 1300 952 286, email [email protected], or visit www.boanco.com.au to discuss your options with our expert advisors.

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