Home topics news via pexels News News Regional businesses show 13% lower failure rates than city counterparts Yajush Gupta December 18, 2025 Regional Australian businesses are failing 13% less than their city counterparts, according to CreditorWatch’s latest analysis. What’s happening: High commercial rents and property prices in these cities have placed major strain on SMEs, compounded by increases in insurance premiums, wages and utilities. Why this matters : Despite Sydney and Brisbane currently leading in business failures, their rates are beginning to level off while smaller capitals like Hobart and Adelaide see accelerating increases. Australia’s business landscape has split sharply along geographic lines in 2025, with the east coast bearing the brunt of rising business failures while western states show remarkable resilience. CreditorWatch’s November Business Risk Index reveals that business failure rates across 2025 have been highest across the three eastern states of NSW, Queensland and Victoria. On a capital city basis, high commercial rents and property prices in Sydney and Brisbane have placed major strain on SMEs in particular, in addition to cost pressures such as increases in insurance premiums, wages and utilities. Both Greater Sydney and Greater Brisbane experienced failure rates of 5.82% in the 12 months to 30 November 2025, up from 5.48% and 5.18% in November 2024 respectively. In contrast, Melbourne recorded 5.55%, Hobart 5.07%, Adelaide 4.73% and Perth 4.70% in the twelve months to 30 November 2025. “Our Business Risk Index highlights a clear divergence: larger capitals like Sydney and Brisbane still lead in failure