Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – Over 1,000 Businesses Insolvent in WA’s Last Financial Year

Media Releases

SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 9 August 2024 OVER 1,000 BUSINESSES INSOLVENT IN WA’S LAST FINANCIAL YEAR The latest figures produced by The Australian Securities and Investments Commission (ASIC) reveal that more than 1,000 businesses in WA were insolvent by the end of June 2024. According to Senator Dean Smith, the ASIC data shows that 1,079 companies during the last financial year entered insolvency:  nearly double the figures two years ago. “The cumulative impact of thirteen-interest rate rises over the past two years is now having a devastating impact on many businesses throughout Western Australia as underlined by these shocking figures.” “During the June quarter alone, there were 308 companies entering insolvency or one every seven hours.” “The ASIC figures show that during this quarter two sectors accounted for around one in three of all insolvencies in WA – Construction (20%) and Accommodation & Food (14%).” Senator Smith added that small businesses, in particular, were being hit hard by the triple whammy of rising costs due to inflation, whilst also having to service higher interest rate payments, while at the same time consumers were becoming more fragile because of the cost-of-living crisis. “Small businesses account for 97% of all businesses in Western Australia with many families operating on small margins.” “They are very sensitive to even a small cut back in consumer spending.” “The impact of the cost-of-living crisis on consumers is underlined by the collapse in household savings with the latest official figures showing the ratio of household savings is now the lowest in 16 years at just 0.9%.” “Unfortunately, many small businesses in WA are teetering on the edge of financial oblivion due to the growing cost of living crisis.” “They are at the coal face of this cost-of-living crisis and unless the crisis ends soon the number of business insolvencies in WA could explode over the coming year,” he said. “Labor’s inflation debacle has now caused a cost-of-doing-business crisis in WA.” “Anthony Albanese has failed to tackle inflation and now small-medium sized businesses are being forced to close their doors and lay off staff.” ENDS

Taylor, Howarth & Smith – JMR – Consumers Losing From Labor’s Failures on Consumer Data Right

Media Releases

Friday, 9 August 2024 CONSUMERS LOSING FROM LABOR’S FAILURES ON CONSUMER DATA RIGHT The Coalition welcome the Assistant Treasurer’s rediscovery of the Consumer Data Right after two years of inaction on this crucial reform. The Consumer Data Right has the potential to be a gamechanger for consumers and competition in Australia, but it needs to be managed right. Under Labor, legislation has sat unpassed in parliament for almost two years, an awareness campaign for consumers has stalled, businesses have been left in limbo without regulatory certainty, and new policy has developed without consideration of how it would interact with a future CDR ecosystem. These failures are of Labor’s making. This is another failure from an Assistant Treasurer who has disappointed in every element of his portfolio, yet stayed in the job because of his factional allegiance to the Prime Minister. Australian consumers are the losers for Stephen Jones’ repeated failures. It is clear from the delays on the Consumer Data Right that Labor’s commitment to competition reform is more about distracting from their role in fuelling inflation than delivering for Australians. The Coalition is committed to making the Consumer Data Right work to boost competition and drive good consumer outcomes. The Coalition will closely scrutinise the next steps outlined by the government and hold Labor accountable for any further delays or cost increases of this crucial reform. The Coalition will continue to work with stakeholders across the whole CDR ecosystem to ensure the roll out is efficient, well phased, and proportionate – particularly for small, regional and rural banks and mutuals. The Coalition is committed to reversing the creeping compliance burden Labor is imposing on Australian businesses. It is essential the Financial Services Regulatory Grid be delivered as a priority, before the end of the year, to help businesses plan and hold regulators accountable for the costs they are passing on to consumers and small businesses. Shadow Treasurer Angus Taylor said this is just another example of Labor’s failed economic management. “It is clear Labor has given up leading the economic debate. Labor has let inflation run out of control and it has botched the roll out of this crucial reform for over two years in office. “This is a crucial competition reform that will deliver real benefits for consumers, but it has sat idle while Labor has spent billions of taxpayers’ money on its own priorities that are just fuelling inflation. “The Coalition is committed to delivering strong competition policy that empowers consumers and small businesses, and we will work in government to ensure the Consumer Data Right delivers on its potential.” Shadow Assistant Treasurer and Shadow Minister for Financial Services Luke Howarth said the Assistant Treasurer provided nothing new today after 14 months of silence on the Consumer Data Right. “Regulatory uncertainty has been the hallmark of the Albanese Government’s financial services policy agenda. “Banks, energy providers, non-bank lenders and other CDR participants have faced a year of regulatory limbo waiting for the Assistant Treasurer to make up his mind. “The Government has failed to explain why it has stalled and neglected this important initiative for so long.” Shadow Assistant Minister for Competition, Charities and Treasury Senator Dean Smith said Labor’s competition agenda is now being driven by the Coalition.   “At a time when lifting productivity is critical to reversing Australia’s declining living standards, Labor’s approach has been characterised by dithering and delay.   “Labor’s go-slow approach to CDR reform has hurt the FinTech industry and disempowered consumers at a time when Australians deserve greater finance technology choices.” ENDS.