Credit bureau illion has released new data on the geographic areas of Australia that have the highest risk of business failure in 2023.
Sydney’s Western and South-western suburbs are in the unfortunate position of having the highest probability of business failure in the whole of Australia, while suburbs in Melbourne’s outer west and north-west have the highest risk of business failure, while in Perth, the outlying southern regions of the metropolis have the highest risk of business failure.
Meanwhile, in Queensland, the region around Inala, Richlands and Durack have the highest risk of business failure – twice as high as Brisbane CBD; while in South Australia, Playford has twice the business failure risk of metropolitan Adelaide.
The report provided a more granular geographical analysis, noting 11% of businesses in the Sydney metro areas of Cumberland were found to have a high risk of business failure over the next 12 months, with Canterbury/ Bankstown/Liverpool close behind with 10%, and Fairfield.
illion’s head of modelling, Barrett Hasseldine noted: “The whole of Australia should be watching and reading about Western Sydney very closely. Although they are further down the path, our data shows that the risk of business failure is increasing in all capital cities. Western Sydney has unfortunately become the national ‘canary-in-the-coal-mine’, and the canary has started to go quiet.”
In Melbourne, Wyndham has the largest percentage of businesses with a high risk of failure into 2023 at 8%, followed by Hume and Brimbank in Melbourne’s north-west with 7% each. These regions each showed a business trading risk substantially higher than the Melbourne CBD average of 4%.
Areas most at risk of business failure around Brisbane are in the region around Inala, Richlands, and Durack, each having more than 10% of businesses at risk; closely followed by Redbank, Redbank Plains, Collingwood Park, Woodbridge, Kingston, Waterford, Logan Reserve and Logan Central with over 9% at high risk of failure. Each of these regions has a business failure risk at more than twice the risk in the Brisbane CBD average of 4%.
In Perth the areas of Rockingham (6%), Kwinana and Mandurah (5%), Wanneroo (5%), Swan (5%) Gosnells (5%) are showing the highest business failure risk. However, on a national scale, this is significantly lower than other states. Perth is faring the best out of all the capital cities that illion collected data on.