Record 9.3 Percent of Hospitality Businesses Close as Costs Surge

Invoice payment defaults surged 47 percent last year, signalling a rise in insolvencies.

Jordons Seafood Restaurant at Sydney's Darling Harbour on July 13, 2011. Greg Wood/AFP via Getty Images

The Australian hospitality sector is facing an unprecedented wave of closures, with the business closure rate soaring to a record of 9.3 percent in the year to February 2025.

This marks a sharp rise from 7.1 percent in the previous year, according to new data from CreditorWatch.