Insolvencies Set to Spike Further in 2025: Over 6,400 Cases Already Recorded

More businesses than ever are struggling to stay afloat across Australia, with only some light relief predicted in the new year.

Construction workers work on the roof of a house being built in Alhambra, Calif., on Sept. 23, 2024. Frederic J. Brown/AFP via Getty Images

About 11,053 businesses were in the red during the 2023-24 financial year, with the latest ASIC figures suggesting the situation will deteriorate in the new year.

Insolvency occurs when a business is unable to meet its financial obligations (like paying wages or debt) as they become due, or when the value of a business’s assets is lower than its liabilities.