Small firms in NSW have been hit disproportionately hard after two years of cost-of-living pressures.
According to ASIC, there were 4,634 insolvencies in 2023-24, which was 41% higher than the previous year and up by 140% compared to 2021-22.
Construction and hospitality have the most failures.
NSW firms made up 43% of insolvencies in Australia last financial year.
There is a higher proportion of employees in NSW working in the private sector compared to the other states and that can lead to greater jobless rates in that state.
The state jobless rate is 4% but Sydney is at 4.2% while the rest of NSW is at 3.3%!
The unemployment rate in South-West Sydney was a big 5.3%, while the northern beaches and Sutherland were at 2.4%!
CreditorWatch says six of Australia’s top 10 districts for rates of business failure during the past year were in Sydney’s western suburbs.
