Federal Member for Fairfax

Media release

Federal leader of the Palmer United Party and Member for Fairfax Clive Palmer says more pressure is being placed on small businesses as the number of small businesses being forced into bankruptcy by the ATO continues to rise each month.

Mr Palmer said the government is being counter-productive in its efforts to restore confidence and encourage small businesses in the 2015 budget, with more businesses being wound up every day.

“Small businesses are suffering at the hands of a government that is clearly more interested in lining its own pockets than boosting the heart of the Australian economy,” Mr Palmer said.

“More than 556 companies are in the process of being wound up by the government as we speak.

“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.

“The government has dropped the threshold level for winding up businesses from $300,000 to $30,000.

“Is the government really supporting small business? These figures are more likely to discourage people from starting up a small business.

“Rather than providing support which is critical in the early stages of a new business, the government is closing the doors of businesses before they are being given the opportunity to make money.

“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