Latest Australian Securities and Investments Commission (ASIC) figures show that corporate insolvencies in the ACT jumped 66% - to 121 in the year to 30 June 2023, up from 73 the previous financial year.

Shadow Minister for Business, Leanne Castley, said the ACT has the second highest percentage rise in corporate insolvencies of all Australian jurisdictions – second only to NSW with a 72% rise.

“While insolvencies are increasing nationally, the rate of increase in the ACT is significantly higher than other smaller jurisdictions. Tasmania and the Northern Territory even had small reductions,” Ms Castley noted.

Ms Castley said the Labor-Greens government in the ACT claimed to be business friendly, but treated business as a milch cow to fund its big spending.

As the Canberra Business Chamber recently said the recent ACT budget was a missed opportunity to support 34,000 local businesses struggling with supply and skills shortages, and rampant cost increases.

The Chamber’s budget submission outlined 14 actionable steps to assist business, with 10 of them requiring minimal or no financial investment – but the government seems to have overlooked the practical ideas completely.

Ms Castley said that ACT businesses, particularly small businesses were facing rising input costs, interest rates, waning consumer confidence, workforce shortages and supply chain pressures.

“It is unsustainable and just doesn’t make sense for the ACT to keep increasing public sector outlays, particularly on the Tram extension, off the back of Canberra businesses.”

“The recent ACT Budget shows payroll tax receipts are projected to increase by 42% over the next 4 years – to over $1 billion per annum. Payroll tax is the ACT’s largest independent revenue source.”

Ms Castley said the compulsory takeover of Calvary had also had an impact business confidence – a further discouragement to business investment.