Labor Government Oversight Leads to Worst Year for NSW Businesses Since the 2008 Global Financial Crisis
Recent data from the Australian Securities and Investments Commission (ASIC) reveals that the number of New South Wales businesses entering serious financial trouble has surged under the Albanese Labor Government. Business insolvencies nearly doubled from December 2022 to December 2024, with 2,534 businesses entering external administration or having a controller appointed during this period, compared to just 1,374 in 2022. A staggering 565 businesses in the state were reported to have gone under in November 2024 alone.
The data highlights that NSW is facing particularly tough times, with business insolvencies in the state now almost matching the combined figures of Queensland and Victoria under Labor’s leadership.
Liberal candidate for Paterson, Laurence Antcliff, has criticized the Albanese Government’s economic management, calling the rising insolvency figures a tragic reflection of its failure to support local businesses and jobs in the Hunter region.
“I’ve spent my life working with small businesses, and I’ve seen firsthand the dedication and sacrifice required to make them thrive. Under Labor, all of that effort is being undone,” said Antcliff. “These aren’t just numbers; they represent real people—business owners, families, and communities losing everything.”
Antcliff attributed skyrocketing power prices, rampant inflation, and ineffective government spending as major contributing factors to the crisis. “We can’t afford another three years of this chaos. A Liberal Government will stand up for the Hunter, lower power prices, support small businesses, and create more local jobs,” he added.
The Deputy Leader of the Opposition, Sussan Ley, also held the government accountable for the economic decline. “The official data shows that November 2024 was the worst month for business failures on record, with a 62% increase from the previous year and a 158% jump since May 2022,” she said. “This is ‘Albonomics’—skyrocketing public spending and collapsing business conditions. Labor must now take responsibility for the state of the economy.”
Since the Labor Government took office, 25,975 businesses have gone insolvent, including:
- 6,925 construction businesses
- 4,012 hospitality businesses
- 1,706 retailers
- 1,329 manufacturers
The ASIC data also reveals several grim milestones under Labor’s tenure, including:
- The highest number of business insolvencies in a financial year: 11,053 in FY23/24
- The worst quarter for business insolvencies on record: 3,633 in Q3 2024
- The highest number of business insolvencies in a month: 1,442 in November 2024
Although these statistics represent a significant surge in business failures, they do not surpass the insolvency rates observed during the 2008 Global Financial Crisis. However, they do mark the worst conditions for businesses in NSW since that economic downturn.
With these devastating statistics, many argue that the Albanese Government’s policies are failing to protect small businesses and job opportunities across the state.