Small businesses aren’t banks: Why Australia’s 60-day payment cycle needs a reset
ASIC data reveals insolvencies among Australian businesses have surged, with small businesses bearing the brunt of rising cashflow pressures.
ASIC (Australian Securities and Investments Commission) data released this week shows that 14,152 companies entered external administration or had a controller appointed during FY2025–26 — approximately 75% more than the 8,105 recorded in the pre-COVID 2018–19 financial year. Almost 95% of these insolvent companies had fewer than 20 employees, and cash flow pressures are the most nominated cause of failure of small businesses in Australia.
Australian small businesses are regularly described as the backbone of the economy.
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