The Australian Bureau of Statistics has released figures that show the ACT’s high business closure rate with 16 percent of companies ceasing trade in the 2007 financial year.
Chris Peters, CEO of the ACT Chamber of Commerce, says that this does not indicate the business sector is struggling. He notes that it is mainly home-based businesses set up by former public servants that fail, blaming superannuation issues such as ‘54/11’ where public servants benefit more from resigning before 55 instead of retiring after 55.
"If governments fixed the 54/11 issue, and people were able to stay full-time or part-time as they achieve mature years, then not only would we not see this number of business closures but we wouldn't see the number of business start-ups in the first place," said Peters.
"It's forcing people to leave when they don't want to leave and either come back later or to go into a consulting business," he added. "We definitely can't afford it in our current skills shortage."
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