11,000 businesses went into insolvency in the 2023/2024 period. Corporate insolvencies are at fresh highs after the worst start to any financial year on record as a deterioration in the economy ­coupled with a crackdown on unpaid tax by the Australian Taxation Office forces the closure of more businesses.

Recent months have seen a tripling in debt recovery action undertaken by the ATO as it pursues unprofitable small businesses given reprieve during the pandemic years and are now unable to pay tax bills. Industry watchers say there is grave concern for the ­hospitality sector, which is ground zero for fallout from the cost-of-living crisis.

Figures from the Australian Securities & Investments Commission show there were 3631 insolvency appointments in the September quarter, a 45.5 percent increase from the same period in 2023.

This September quarter had the highest rate of external ­administration and controller ­appointments since ASIC records began in the late 1990s, surpassing the previous high in 2012 when 2961 businesses went under following the global financial crisis.

Rex was the biggest casualty after the airline entered voluntary administration in July, owing $500m, and subsequently culled its Boeing 737 fleet. Administrator EY has yet to find a buyer.

EY strategy and transaction partner Morgan Kelly said businesses were squeezed by softening revenue as a result of the cost of living, higher input costs, and ­increasing interest rates lifting debt repayments.

Accommodation and food services insolvency appointments grew at a faster rate of 109 percent from 339 to 709 in the quarter. This included The ­Beston Global Food Company, which was placed into voluntary administration last month.

Extracted from an article by Matt Bell, October 21, 2024, The Australian Business Network.

Australia like most Western nations has ejected God out of all aspects of life so it will continue to come under God’s judgement. What is unfolding in the world fits with Biblical end-times prophecies so we should not be surprised but rejoice that Satan’s time of deception is drawing to a close. Nevertheless, we need to take Jesus’ warning seriously about endurance and allow the Holy Spirit to direct our every step.

“Then they will deliver you up to tribulation and put you to death, and you will be hated by all nations for my name’s sake. And then many will fall away and betray one another and hate one another. And many false prophets will arise and lead many astray. And because lawlessness will be increased, the love of many will grow cold. But the one who endures to the end will be saved. And this gospel of the kingdom will be proclaimed throughout the whole world as a testimony to all nations, and then the end will come.” Matthew 24:9-14