Australian small businesses are facing unprecedented hardships, leading many to closure this year. Business owners, like Belinda Jane Keehn, who operated BJ’s PJs, have shared heartbreaking stories of being unable to survive financial pressures post-COVID-19. Keehn cited escalating costs of production, increasing living expenses, and heightened competition from larger brands as factors that rendered her business unprofitable.
Similarly, Mick Owar, who ran a construction firm, experienced a surge in material costs and a decline in workforce reliability after the pandemic, ultimately forcing him to shut down his operations. He described the heavy tax burdens on Australian businesses as unrealistic, further complicating his ability to sustain his enterprise.
Research from UNSW highlights that the rise in material costs, tax liabilities, and high-interest rates have driven a spike in business failures, alongside a noticeable decrease in consumer spending. Professor Richard Holden noted that businesses reliant on discretionary spending have been particularly hard-hit, making their survival untenable.
In October, CreditorWatch reported that business closures in Australia were increasing at an alarming rate, a trend exacerbated by the ongoing cost-of-living crisis and growing tax debts. The report indicated that every sector is witnessing these distressing closures, particularly following intensified collections by the Australian Taxation Office.