The recent surge in business failures across New South Wales is the direct result of Labor Governments’ lack of understanding of cost-of-living pressures and their impact on consumer confidence.

The disastrous policies of both the Albanese and Minns Labor Governments are pushing small businesses to the brink, with NSW seeing a staggering 41% increase in business insolvencies over the past year.

Recent data from ASIC reveals that 4,634 NSW businesses went under in 2023-24, a 143% increase compared with 2021-22 figures. NSW now accounts for 42% of all business insolvencies in Australia.

Small firms, especially in the construction and hospitality sectors, have been disproportionately affected.

Shadow Minister for Small Business Tim James said NSW has always been a state that thrives on private enterprise, but Labor’s policies are causing immense pain to small businesses.

“The cutting of vital cost of living support programs has placed unprecedented pressure on household budgets, further dampening consumer confidence and contributing to the rise in business failures,” Mr James said.

As unemployment in Sydney continues to rise — now sitting at 4.2%, a full percentage point higher than the rest of NSW — Labor’s failure to support small businesses is putting even more jobs at risk.

The number of job seekers in NSW has increased by nearly 38,000 over the past year, highlighting the dire situation facing many families and communities.

It’s time for the Minns Labor Government to take responsibility and act decisively to prevent further damage to our state’s economy.

The Minns Labor Government must recognise the urgent need to support our struggling local small businesses. The survival of small businesses in NSW is at stake.