This piece was written and provided by Alares.
Insolvencies continued to increase in March, again peaking at the highest monthly level seen in many years. Small business restructuring (SBR) appointments spiked in March, driven in large part by the ATO’s debt recovery efforts.
Key highlights in March
- Insolvencies more than 50% above pre-COVID levels.
- Significant spike in small business restructuring appointments.
- The big four banks remain vigilant in their Court recoveries.
Insolvencies in March peaked at more than 50% above pre-COVID levels
March marked the highest number of monthly insolvencies in many years.
Small business restructuring appointments spiked in March, amid mounting pressure from the ATO
As the ATO continues to disclose overdue tax debts, as well as issuing director’s penalty notices and warning letters, more small business owners are turning to the SBR process for relief.
SBRs continue to account for a growing percentage of all insolvencies
SBRs in March accounted for ~16% of all insolvency appointments.
The ATO remains active in Court recoveries
In addition to director’s penalty notices and disclosing business tax debts, the ATO remains active in Court recoveries.
Similarly, the big four banks remain vigilant with Court recoveries
Court actions filed by the big four banks in March remained above historical monthly levels.
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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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