Federal Member for Fairfax

Media release

Federal leader of the Palmer United Party and Member for Fairfax Clive Palmer says the latest insolvency notices continue to show that the Australian government is the largest petitioner of bankruptcy in Australia.

Mr Palmer said the months since May 2015 have seen the highest number of companies being wound up by the government in two years.

He said more than 600 companies were wound up by the government in May, almost 500 in June and July and more than 500 companies have been projected for August.

“The government is the largest petitioner of bankruptcy in Australia,” Mr Palmer said.

“It is disappointing to see that businesses and companies hardly stand a chance under a Liberal government since they dropped the threshold level for winding up businesses from $300,000 to $30,000.

“The government is closing the doors of businesses before the business is given the opportunity to make money.”

Mr Palmer said Australia should adopt a Chapter 11-like system, similar to that of the United States, to assist businesses

“Introducing a Chapter-11 like system in Australia would enable the equity of a 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.”