Australias business landscape has seen a steady rise in the number of insolvencies in recent months as cost-of-living pressures bite and economic conditions slow down. Although numbers had declined for several years, business collapses are now back above pre-pandemic trends, putting the spotlight on the growing problem.

According to data from corporate regulator ASIC, appointment of external administrators a reliable gauge of insolvencies nationwide soared to 7,942 in the 2022/23 financial year, a jump of 62% over the previous financial year. This nearly matched the pre-pandemic average of 7,939 insolvency appointments annually.

That rising trend ha…

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