Submission: Cost of Living Inquiry

06/09/2024

ARITA has made a submission to the Senate Select Committee on the Cost of Living setting out some longer-term trends and characteristics seen in the statistical material published by a range of government agencies (primarily ASIC, ASFA and the ABS), some recent market behaviour, some thoughts on why a level of insolvency is critically important to the efficiency of the economy, and why insolvency law reform remains a great but unaddressed microeconomic reform opportunity.

The submission notes that as the Australian economy emerges from the rigours of Covid we are seeing insolvencies return to their pre-Covid levels, however, it is too early to tell if Covid legacy issues have fully worked their way through the insolvency statistics. Beyond Covid, deteriorating domestic and international economic conditions are placing businesses, small and large, under pressures which will exacerbate this trend (if they haven’t already), especially if there is a recession in the global and/or domestic economies.

Read ARITA's Submission.