Out in the regions: Western Australia

On the ground with WA Insolvency Solutions

Jimmy Trpcevski, Managing Partner of WAIS, Jirsch Sutherland’s WA division, shares observations from across regional Western Australia, where strong resource-driven economies sit alongside growing financial pressures for many small and medium-sized businesses.

One of the things you learn quickly when you spend time out in WA’s regions is that the economy feels very different once you leave Perth.

Spend a few days travelling through the state and you start to see it clearly. One day you might be sitting down with a construction contractor in Bunbury, the next talking to a tourism operator in Busselton, and a few days later meeting a director in Kalgoorlie whose business supports the mining sector. Another day might involve discussions with a logistics operator in Geraldton supporting regional supply chains, or a business owner in a Pilbara town whose business services major resource projects. In the same week you might hear from a hospitality owner preparing for the next holiday rush.

Different industries, different towns – but lately many of those conversations are circling around the same themes: rising costs, tighter credit and businesses working harder than ever to keep cash flowing.

For our team at WAIS, those conversations are a regular part of the week.

Regional footprint

While our head office is in Perth, much of our work takes place across regional Western Australia where we work closely with directors, accountants, lawyers, financiers and advisers throughout the state. Importantly, we also have people on the ground.

In addition to Perth, our team operates from offices in Busselton, Albany, Bunbury, Esperance, Geraldton and Kalgoorlie. That regional footprint keeps us closely connected to the industries and local economies that drive regional WA and means directors and advisers can access experienced restructuring and insolvency advice without travelling to Perth.

Our team also spends considerable time travelling throughout the state to stay connected with regional businesses and advisers. Through that engagement we regularly work with businesses across a wide range of WA centres – from Mandurah and Rockingham on the coast, through the South West towns of Bunbury and Busselton, across the Great Southern and Esperance, into the Goldfields around Kalgoorlie, the Mid West including Geraldton, and the Pilbara centres of Port Hedland and Karratha.

We also work closely with chambers of commerce and business groups across the region, including the Bunbury Geographe Chamber of Commerce and Industry, the Esperance Chamber of Commerce and Industry, the Port Hedland Chamber of Commerce, the Busselton Chamber of Commerce and Industry and the Mid West Chamber of Commerce and Industry. These relationships are important in regional communities, connecting business owners, advisers and industry groups and creating forums where local business challenges can be discussed openly.

Mixed conditions across regional WA

Many of those sectors remain resilient. At the same time, the pressure points are becoming harder to ignore. Through our work with advisers and directors, we are hearing similar challenges emerging across a number of industries.

Construction businesses are still dealing with the legacy of fixed-price contracts signed before building costs escalated sharply. Hospitality and tourism operators are managing rising wages, insurance premiums and supplier costs while navigating more cautious consumer spending, while retailers are also feeling the squeeze from higher overheads.

In many cases, the issue isn’t a lack of demand. We are seeing businesses with solid order books still experiencing financial strain due to delayed payments, rising finance costs or an inability to absorb sustained cost increases. For regional businesses, those pressures can be magnified by distance, transport costs and workforce constraints.

What the data is showing

WA has historically recorded fewer insolvencies than many eastern states due to the stabilising influence of the resources sector. However, the same pressures affecting SMEs nationally are becoming more visible here as well.

Recent risk data from CreditorWatch suggests that regional WA generally records lower business failure rates than Perth’s metropolitan areas. However, the data also highlights pockets of stress in several regional industries. Agriculture in parts of the Wheatbelt, tourism and hospitality centres, and businesses exposed to construction activity are all experiencing increased financial pressure.

Those insights broadly reflect what we are hearing on the ground.

Personal insolvency data in WA tells a similar story. While levels remain below historical peaks, the number of individuals entering formal insolvency processes is trending upward as higher interest rates and rising living costs bite. Many cases are business-related, often involving directors or sole traders carrying personal exposure, with tax debt increasingly a contributing factor.

The value of proactive advice

When restructuring and insolvency advice is sought early – often through discussions with accountants, lawyers or financiers – there are typically more options available to stabilise a business and manage risk effectively. For directors and the advisers who support them, that proactive approach can help preserve value and provide greater clarity around the options available.

WA’s regional economy is resilient and entrepreneurial, but like any economy it moves through cycles. When conditions tighten, having the right advice involved early can make all the difference.

Jimmy Trpcesvki
Managing Partner
WA Insolvency Solutions (WAIS)