Australian Treasurer Jim Chalmers has faced scrutiny over his claims of a strong economy, particularly his emphasis on a recent surge in new company registrations. While data from the Australian Securities and Investments Commission (ASIC) shows 44,040 new companies registered in July, an increase from June and marking the highest numbers since 1999, some experts argue these figures do not necessarily reflect a thriving business environment.
Chalmers had stated that the record numbers of new businesses being created under the Labor Party's watch, alongside strong business investment, indicated positive economic momentum. He further noted that average new company registrations had been higher under the current government than any previous government on record, with over 1.3 million new companies and 1.3 million jobs created since the government took office.
However, real estate veteran Tom Panos offered a contrasting perspective, cautioning against premature celebration. "Registering a company does not necessarily mean somebody has opened up a thriving new business," Panos stated in a social media video. He suggested that individuals might register companies for tax purposes or as part of restructuring existing entities, particularly in response to changes in family trust regulations. Panos characterized such registrations as "paperwork" rather than indicators of genuine business achievement, which he defined as building a successful business that invests, employs people, and survives.
Online commentary also reflected skepticism, with some social media users suggesting that the increase in company registrations was a defensive measure against proposed tax changes. "It's called restructuring to avoid your rubbish tax changes. Don't confuse defensive paperwork with genuine business growth," one user commented.
Jenny Wong, tax lead at CPA Australia, corroborated this view, noting that while some new businesses may be genuine, a significant portion of business owners are reviewing their structures due to recent budget announcements and proposed tax changes. She indicated that an increasing gap between company incorporations and GST registrations could suggest that a substantial number of new companies are being established for structural or tax planning reasons, rather than representing new trading businesses. Wong advised business owners to await final details on tax changes before rushing into restructuring.
