Gosnells set to see the most business failures by August 2025, according to fresh CreditorWatch data

The great divide between Perth metro and regional WA has been underscored by fresh data highlighting the areas most at risk of business failures over the next 12 months. Gosnells in Perth’s south-east is expected to have the highest rate of business failures in WA by August next year, with 7.3 per cent of businesses in the suburb predicted to close down either voluntarily or through insolvency. It is followed by East Pilbara with a failure rate of 7.1 per cent, according to data released by analysts CreditorWatch on Monday. Despite this, CreditorWatch chief economist Anneke Thompson said regional WA, by and large, had the lowest rates of business failures. The data showed the eight areas with the lowest rates of business failures in WA were all in regional areas — led by Wheatbelt-South (3.5 per cent), Esperance and Albany (both at 3.9 per cent). It comes as intense pressure on household budgets weighs on consumer discretionary spending. Other areas in the Perth metro area predicted to record rapid rises in business failure rates include South Perth, Armadale, Melville and Wanneroo. “Given regional areas are dominated by agriculture, health, education and other non-discretionary services, these areas are less impacted by the significant fall in consumer spending that has been recorded around the country,” Ms Thompson said. “Areas with highly mortgaged households and a business make-up with a high proportion of food and beverage venues will usually have higher rates of business failure, despite their inner-city location.” Ms Thompson said the area around Serpentine-Jarrahdale was forecast to see the greatest deterioration in failure rates, with 5.7 per cent of businesses expected to go bust by this time next year. This is up from the low 2.9 per cent at current rates.