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The Reel says
Claim blaming Labor policies for daily business collapses is misleading?
Michaelia Cash accurately cites business collapse statistics, but attributing all insolvencies to Labor policy ignores key post-COVID debt enforcement drivers. Daily Telegraph reports and ASIC data confirm high insolvency numbers, with averages around 30 to 46 closures daily. However, reporting from The Guardian shows the post-pandemic spike is heavily driven by the Tax Office resuming collection on old debts paused during COVID, alongside broader interest rate hikes. Blaming government policy alone presents an incomplete and misleading picture.
- 2 claims checked
- 3 sources
- Checked 6 Nov 2026
- Main source: 'Fire the Liar' campaign live: Scott Challen streams the Melbourne march against mass migration live as Pauline Hanson signs off from Western Australia with Luke Herdegen
▶The Reel we checked
@senatormichaeliacash
Labor is putting small business out of business. We'll get Canberra off their backs so small businesses can get ahead - not just get by! It's all set out in…
Watch on Instagram ↗The trick: Blames one cause
It pins a complex outcome on one cause (known as oversimplified cause).
“46 businesses are going bust every single day because of your policies.”
How this trick works and how to answer it →
What we checked
What the Reel doesn't tell you
- The Reel omits that the elevated business insolvency figures are largely driven by the Australian Taxation Office resuming tax debt enforcement paused during the pandemic, alongside RBA interest rate hikes targeting domestic capacity and sector-specific pressures.
- Treasurer Jim Chalmers stated that the Middle East conflict is the primary driver of global inflation spikes, while noting that the government is exercising spending restraint and budget management to assist.
- ASIC corporate insolvency statistics show elevated levels of business insolvencies, averaging around 30 to 40 per day since May 2022, concentrated primarily in construction, retail, and hospitality.
How it plays you
It wants you to think: “Labor's economic policies are driving Australian small businesses out of business, and the Coalition has a plan to support them.”
Even though business insolvencies are elevated and the Treasurer cited external global factors, this does not prove government policy is the sole cause. Reporting from The Guardian and economic analysis show business failures are heavily driven by the ATO resuming enforcement on tax debts paused during COVID, alongside interest rate hikes and sector-specific challenges.
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