This piece was written and provided by Alares.
The major story in February was the ATO which has significantly ramped up its Court activity to the highest levels since 2019.
Previously in 2022, ATO activity increased only to subside again. Will we see the same pattern in 2023? Or will ATO activity continue to ramp up? Stay tuned for next month’s update to find out.
Key highlights in February:
- The ATO significantly increased its Court activity in all three areas – winding ups, money owing claims and personal bankruptcy applications.
- Winding Up applications continue a steady upwards trend.
- Non-bank lenders are on track for the highest number of Q1 Court actions since 2019.
Insolvencies increased in February
Total numbers were above the historical monthly average for February.
The ATO significantly increased its Court recoveries in February, doubling its numbers from January
ATO winding ups, money owing claims and personal bankruptcy applications were all at the highest monthly level since the onset of COVID. The total amount of ATO Court activity is nearing half of the ATO’s historical levels. If this trend continues, what will this mean for insolvencies moving forward?
Winding up applications continue a steady upward trajectory
With the exception of a typical dip in December, winding up applications have been steadily trending upwards for the past 12 months.
The big four banks continued to remain active in February inline with recent activity
The combination of higher interest rates and a more aggressive ATO will undoubtedly put pressure on many borrowers. Will this directly impact insolvencies in the months ahead? Stay tuned to find out.
Meanwhile, the non-big four money lenders are on track for the highest number of Q1 Court actions since 2019
Again, combined with higher interest rates and an active ATO, this could make borrowing conditions quite difficult for many businesses.
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Patrick Schweizer
Director, Alares
w: www.alares.com.au
e: patrick@alares.com.au
m: +61 418 739 921
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