The 5 businesses to go bust so far this year named
FIVE businesses across the region have gone bust since January as the government decides what temporary measures should be enacted to keep the sector viable.
The Federal Government is currently deciding whether some 80 temporary regulatory measures Treasurer Josh Frydenberg announced in March should be extended beyond September 25, when they are due to expire.
The measures restricted the conditions through which creditors could initiate insolvency proceedings against companies, and increased the time limit for action on a statutory demand for payment from three weeks to six months.
The changes have had a dramatic effect, saving many thousands of jobs in the short term.
The number of companies becoming insolvent during June fell to 510, less than half the five-year June average of 1134.
In Queensland the drop has also been stark, with insolvencies declining from a June average of 224 to 114 this year.
Five businesses across the Mackay, Isaac and Whitsunday regions have gone bust between January and August this year, a small number compared to the state.
Diamond Crete Constructions went into liquidation in February with Bill Karageozis appointed liquidator in a notice published by ASIC.
A winding-up notice was issued on March 14 for the business registered in 2014.
Frankair Property Pty Ltd, which operated out of Moranbah, went into liquidation on January, records showed.
Desmond Teng and Gavin Moss were appointed liquidators by ASIC, and records showed the business was registered in 2016.
It remains under external administration.
Morton Berg Pty Ltd, under which at least two other business names are registered, went into liquidation on June 12.
Its operations were linked to Mackay and the Whitsundays.
Packapigs Pty Ltd, which had traded as Hog's Breath Cafe Airlie Beach, went into liquidation on February 20.
A creditors report by FTI Consulting found Packapigs was the parent company of five Hog's Breath outlets including in Cleveland, Joondalup, Shellharbour and Burpengary.
The report noted the outlets had been sold or closed before liquidators were appointed.
The Airlie Beach restaurant was among those listed for sale, and was sold to new owners.
CreditorWatch CEO Patrick Coghlan said while extending the relaxed insolvency measures might seem appealing given the harsh economic environment, the measures were "supporting zombie businesses that are continuing to take on more debt" which could ultimately create a domino effect of failing businesses.
"We could see that domino effect because these secondary business to fail when they probably could have survived if they knew which companies were ultimately trading insolvent now," he said.
Companies across all industries were now waiting an average of 44 days for payment for services - up from 14 days in 2019, Mr Coghlan said.
Payment times in agriculture, manufacturing and construction were holding up pretty well, he said, whereas in administrative services, transport, warehousing and rental hire, they were as much as seven times longer than they were pre-COVID.