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Victorian hospitality businesses go under as ATO claws back debts

The hospitality sector has once again borne the brunt of the latest wave of lockdowns in Victoria, with a slew of new casualties recorded on the state’s monthly insolvency list. 

New Port Melbourne restaurant Dakota Dining, the master franchisee for Burger Edge and Goodie Catering all called in the liquidators last month. 

George and Sonia Brewty only set up Dakota Dining late last year, but called it quits in July with around $120,000 owed to trade creditors. The business is now up for sale. 

Some Burger Edge outlets including the Wollert location are still in business. 

Revive Financial partner Jarvis Archer said the Australia Taxation Office was beginning to chase debts after a period of leniency. 

“We’ve seen directors using available company assets to meet their personal expenses, and one director indicated they’re taking a ‘no rules’ approach to what they do,” he told The Herald Sun

“Adding to the desperation, many small business owners feel unfairly looked after by the government compared to big businesses.” 

However, Archer expected the overall number of insolvencies would ramp up in 2022 after struggling businesses had exhausted government stimulus funds. 

“We may be well into 2022 before we see insolvency appointments return to pre-Covid levels,” he said. 

 

 

Sheridan Randall, 4th August 2021