Queensland – Perfect One Day, the Bankruptcy Capital of Australia the Next: CCIQ
Queensland’s has the highest levels of insolvency in the country according to statistics compiled by the Chamber of Commerce and Industry Queensland (CCIQ) with analysis showing an average of four local businesses a day are closing as the numbers of hours worked in the state economy and lower private investment continue to underpin the state’s near term outlook.
According to statistics compiled from the Australian Financial Security Authority (AFSA) and the Australian Securities and Investment Commission (ASIC), the levels of financial hardship recorded in Queensland are substantially higher than the more populous states of New South Wales and Victoria.
Findings from the latest Suncorp-Pulse survey identified rising labour costs, falling profitability and subdued confidence levels which reflects a business sector that on key indicators is lagging the rest of the country.
CCIQ notes statistics compiled from ASIC show the leading industries that enter insolvency in Queensland have historically been those located in Construction, Accommodation and Food Services, Retail Trade and logistics while on a per capita basis the critical areas of the state under relatively higher levels of financial stress are those regional centres located in central and northern Queensland.
CCIQ Head of Media, Dan Petrie said that despite government announcements or re-announcements of the same projects, the need to urgently address the levels of support in regional areas and provide certainty for major projects needs to happen without further delay.
“Sadly Gladstone, Rockhampton, and Mackay have endured an incredibly difficult last few years while the Gold Coast despite some positive headline data also has elevated levels of people and businesses in financial distress.
“Despite a recent moderation in the overall headline measure of bankruptcies across the state, the situation facing the state is becoming more challenging as every month passes,” Mr Petrie said.
Data compiled by CCIQ indicates that in 2017-18 financial year, insolvencies in businesses operating within the hospitality industry rose sharply.