The number of company collapses in Western Australia decreased in June from the previous month, while climbing across the nation, in another sign the state is the driving force behind the nation’s economy.
Official insolvency figures from the Australian Securities and Investments Commission showed total external administrations were up 25.7 per cent in June, to 1,027 – the second highest month on record.
But in Western Australia, total administrations dropped from 61 in May, to 57 in June.
Corporate collapses rose by 35 per cent in Victoria and 33.1 per cent in New South Wales on the previous month’s figures, the highest monthly insolvencies recorded for both of those states.
Analysts from accountancy firm Taylor Woodings attributed the tough trading environment across Australia to a lack of liquidity in debt and equity markets, higher interest rates compared to other developed nations and continued enforcement actions by the Australian Tax Office, in addition to the general global and local economic turmoil.
“There remains a range of pressures on SME’s and company profits and we predict there will likely be an increase in insolvencies in the months ahead,” Taylor Woodings’ report said.
