GOING BROKE
Personal insolvency rates high
THE lingering impacts of the resources slump and a strong entrepreneurial spirit have sent Toowoomba broke at one of the highest rates in the state.
Australian Financial Security Authority figures revealed Toowoomba had one of the highest personal insolvency rates in Queensland for the December 2017 quarter.
Toowoomba recorded 64 debtors entering a new personal insolvency arrangement in the timeframe, a small portion of the 1141 debtors across the state outside the greater Brisbane region.
Brisbane and its outer suburbs recorded 1021 new personal insolvency arrangements.
But greater support for existing business could turn around the fortunes.
While an alarming figure, Toowoomba Chamber of Commerce CEO Jo Sheppard said it was important to consider the competitive business environment in the region, as well as the fluctuations in the resources sector.
“When considering the statistics, it’s very relevant to look at the downturn in the gas sector a couple of years ago and the longer term impacts are still being felt,” Ms Sheppard said.
“But businesses are operating in a very competitive environment.
“A lot are doing it tough and increasingly they’re operating in a global market place.
“That means more and more changes for them.”
While start-up companies were increasingly looking to Toowoomba and the wider region, and achieving success in the majority of cases, Ms Sheppard said more support was needed for turnaround businesses.
A turnaround business is one in financial difficulty but considered salvageable.
Ms Sheppard called on both the state and federal governments to support those businesses.
“It’s a highly competitive environment and something the State and Federal Government could turn their focus on,” she said.
“There are a lot of start-up companies but there is a strong argument to be made for equal support for those turnaround businesses.
“There needs to be some assistance for them.”
Although Toowoomba had one of the highest rates of personal insolvency in the state, Ms Sheppard said regional businesses had also adopted innovative methods to remain viable.
“I think Toowoomba and the region is very entrepreneurial, with big businesses but also the smaller businesses having a go,” she said.
“The more isolated, the more entrepreneurial they are and do well in isolation.”
❝ A lot are doing it tough and increasingly they’re operating in a global market place. — Toowoomba Chamber of Commerce CEO Jo Sheppard