The number of businesses in administration was up 35 per cent year-on-year last month according to CreditorWatch, a significant jump and one which has sparked concerns Australia might be about to face an onslaught of collapses while the Reserve Bank fights to rein in inflation.
Picture: NCA/Jason Edwards This took pressure off their cash-flow and allowed them to continue operating, but it also saw them take on sometimes unsustainable levels of debt. Most experts expect the ATO to pursue collections quickly, with the government eager to improve the Budget's bottom line. "A lot of data is discreet, businesses won't publish it because it's about maintaining confidence in the market.Mergers and acquisitions could also play a role, with businesses in more stable positions swooping in to take advantage of smaller competitors unable to make ends meet.