The number of companies trading at a loss increased in the 2009-10 year, according to the latest figures from the Australian Taxation Office.
ATO announced that small business insolvencies have reached record levels with the number of companies placed into external administration in February at the highest level since the statistics were introduced in 1999.
Australian Securities and Investments Commission statistics show 1,123 businesses were placed into administration in February, compared with 518 in January.
Retailers, smaller businesses and a flurry of restaurants and takeaway places have been affected.
The Government is considering a recommendation to introduce a “carry back” loss scheme, which would allow small businesses to use profits from previous years to offset a loss.
