Australia faces avalanche of business failures

Dark times: A cleaner walks along a deserted laneway at the Queen Victoria precinct in Melbourne, Australia. About 240,000 businesses in tourism and professional services are at high risk of failing in Australia during the September ‘fiscal cliff’, when widespread wage subsidies are set to end, economists at Deloitte said. — Bloomberg

SYDNEY: Australia faces an avalanche of business failures in its transport and hospitality sectors after government subsidies end in September, insolvency lawyers and economists say, while some argue that so-called “zombie” firms should be allowed to fail.

About 240,000 businesses in tourism and professional services are at high risk of failing during the September “fiscal cliff, ” when widespread wage subsidies are set to end, economists at Deloitte said.