KPMG Australia Tax Partner Kaylene Hubbard says small to medium businesses are “bearing the major brunt” of consumer cost constraints.

Record numbers of businesses are collapsing into insolvency as they battle soaring wages, rents, energy prices and a decline in consumer demand.

CreditorWatch says one in 11 hospitality businesses closed in 2024.

“There are lots of pressures, as you’d expect, at the moment,” Ms Hubbard told Sky News Australia.

“Small to medium businesses are bearing the major brunt of consumer cost constraints.”