As we look back on the past year, the data offers valuable insight into where the market is heading. Yes, there are challenges — but there are clear steps businesses can take to protect themselves.
📉 Insolvencies remain elevated
CreditorWatch’s recent reporting shows insolvencies are still elevated, and October again set a record for highest number of monthly insolvencies on record. However, the trend has somewhat levelled out over the last quarter. We’re not seeing month-on-month escalation — instead, figures are holding at a higher but steady level. Conditions are tough, but not spiralling. For businesses trading on credit, it’s a reminder to stay alert rather than alarmed.
💰 ATO Collectable Tax Debt Rises
Recent reporting shows the collectable debt pool has now surpassed $50 billion, and they are cracking down on recovering overdue tax, particularly unpaid super, PAYG and GST. They’ve taken a more active approach where businesses aren’t engaging, while offering payment plans for those who do.
🔎 Key Themes From This Year
- 🔻 Insolvencies remain high — October’s spike was a reminder of underlying pressure.
- 🔻 Payment defaults are rising — typically a lead indicator for future failures.
- 🔻 Risk is broadening — pressure is no longer isolated to construction and retail. Transport/logistics and manufacturing particularly have seen a sharp increase.
📉 2026 Predictions: What Businesses Should Prepare For
- 🔻 Insolvency activity to stay elevated for at least the first 6 months of 2026.
- 🔻 More ATO-driven wind-ups for businesses that fall behind and don’t engage.
- 🔻 Closer scrutiny from trade credit insurers with high demand for cover.
How Debtor Protect Can Help
With insolvency risk rising and payment defaults increasing, more businesses are reassessing their exposure.
As specialists in the trade credit insurance market, we help businesses:
- 🛡️ Understand their credit risk
- 🛡️ Secure protection from reputable insurers
- 🛡️ Access real-time risk insights on their buyers
- 🛡️ Trade confidently, even in volatile conditions
If you’d like a no-obligation assessment of your current risk exposure, just let us know — we’re here to help.
