Tax office and Treasury data shows there were fewer business exits in 2020-21 when compared to the number of exits in the previous two years. More businesses opened in 2020-21 than in the previous two years, which suggests predictions at the beginning of the pandemic that there would be a small business crisis were misjudged. Business cash holdings have risen by $150 billion since December 2019:
According to tax office and Treasury data obtained by The Australian, there were 40 per cent fewer external administrations this year than in the same period in the years before Covid-19.
Over the 12 months from September 2020 to September 2021, 4219 companies entered external administration compared with 7552 from September 2018 to September 2019.
