Business insolvencies hit record highs with worse to come, warns CreditorWatch

In short: The number of businesses in external administration has hit a record high, according to CreditorWatch. The latest piece of the domestic economic jigsaw puzzle shows a stark rise in business failures, which have risen to record highs, hit by a triple blow of weak consumer demand, cost pressures and a tax office now determined to collect what it's owed. According to data from debt monitoring firm CreditorWatch, more Australian businesses are now in the hands of external administrators than ever before, rising more than 22 per cent since this time last year. According to the analysis, regions with a higher proportion of older businesses and older residents have shown greater resilience to the pressures as older businesses are less likely to be carrying higher debts, while older residents tend to have lower mortgage levels and their spending is more immune to interest rate movements. "Of particular concern is the continued high level of trade payment defaults which, coupled with the ATO now lodging defaults for tax debts outstanding of $100,000 or more at increasing rates, means more and more businesses are unable to meet their supplier payments on time," she warns.