Federal Member for Fairfax

Media release

Federal leader of the Palmer United Party and Member for Fairfax Clive Palmer says despite the government expressing its desire to assist small businesses in the 2015 budget, it was actually winding them up.

Mr Palmer said in May, 556 companies were in the process of being wound up by the government.

“This figure represents 77 per cent of all wind-ups in Australia and is twice as many as July 2014, making the government the largest petitioner of bankruptcy in Australia,” Mr Palmer said.

“The government has dropped the threshold level for winding up businesses from $300,000 to $30,000. They are closing the doors of businesses before the business is given the opportunity to make money.”

“Is the government really supporting small business?

“If the government was truly committed to helping small businesses they would adopt a Chapter 11-like system, similar to that of the United States.

“This would enable the equity of the business to be sold, but would allow the business to remain operational and continue to trade.

“This would not only help to save many struggling businesses but would also save jobs.”

ENDS