Back

Gold Coast Insolvency Firm Reviews FY2026 Activity, Calls for Early FY2027 Action

GT Advisory & Consulting

Key Facts:

• GT Advisory & Consulting has reviewed FY2026 activity, noting that certain sectors have been hit harder than others when it relates to insolvency.  
• Construction, hospitality, and retail were the most severely affected sectors, driven by fixed-price contract pressures, rising input costs, margin compression, and subdued consumer discretionary spending across South East Queensland.
• The Reserve Bank of Australia held the cash rate at 4.35 per cent following its June 2026 meeting, with cost-of-capital pressure remaining elevated and both lenders and the ATO returning to active enforcement postures throughout the year.
• GT Advisory warns that insolvency volumes are expected to remain high through the first half of FY2027, with construction businesses, hospitality operators, and retailers identified as carrying the highest near-term risk.
• Principal Glenn O'Kearney urges directors to seek advice from a registered practitioner early in FY2027, emphasising that early engagement preserves restructuring options and can materially improve a director's personal position where guarantees or tax debts are involved.

MEDIA RELEASE 

FOR IMMEDIATE DISTRIBUTION

Wednesday, 15th July 2026

HEADLINE: Gold Coast Insolvency Firm Reviews FY2026 Activity, Calls for Early FY2027 Action

GOLD COAST, QLD - GT Advisory & Consulting, a Gold Coast-based insolvency and restructuring practice established in 2016, today released its review of the 2025-2026 financial year, noting that ASIC recorded 12,819 corporate insolvency appointments nationally for the year to 31 May 2026.

Principal Glenn O'Kearney says SE-QLD businesses endured sustained cost-of-capital pressure throughout the year, with construction, hospitality and retail presenting the most complex restructuring work.

"What made the 2025/26 financial year an incredibly complex period for distressed businesses in South East Queensland was a perfect storm of compounding economic pressures covering consumer confidence and regulatory changes," said Glenn O'Kearney. 

"At a micro level, state-based conditions and the localised Gold Coast market are grappling with severe margin compression and multi-decade lows in business confidence. When you overlay this with macro factors like global supply chain volatility and geopolitical uncertainty, it inevitably erodes consumer sentiment and stifles discretionary spending.” 

FY2026 in context

National corporate insolvency appointments for the year to 31 May 2026 reached 12,819, according to ASIC insolvency statistics published on 15 June 2026 (source: ASIC insolvency statistics).*

The figure compares with 13,413 appointments recorded for the same eleven-month period in FY2024-2025, a modest improvement that reflects some stabilisation after the post-pandemic surge. 

The first six months of FY2026, to 31 December 2025, saw 7,413 corporate appointments nationally, per data published by Insolvency Australia, confirming that elevated volumes were sustained across both halves of the financial year.

Construction accounted for the highest absolute appointment count, as fixed-price contracts signed before the RBA tightening cycle were met with materials cost inflation, subcontractor failures, and project delays that squeezed margins to the breaking point. 

Hospitality operators faced pressure from two directions: higher input costs and a consumer base managing increased mortgage repayments. 

On a per-business basis, hospitality remained one of the most exposed sectors to formal insolvency. 

Retail operators absorbed ongoing margin compression due to wage growth and rising import costs, while consumer discretionary spending remained constrained throughout the year.

The interest rate environment shaped the volume and complexity of insolvency work throughout FY2026. 

The Reserve Bank of Australia raised the cash rate by a further 75 basis points during the year, holding at 4.35 per cent following its June 2026 meeting (source: rba.gov.au/statistics/cash-rate/ [

Cost-of-capital pressure did not unwind as many directors had expected at the start of the year. 

Lenders and the Australian Taxation Office both returned to active enforcement postures, and the proportion of court-ordered liquidations rose, reflecting a shift from voluntary to creditor-driven processes.

GT Advisory in FY2026

Throughout the financial year, GT Advisory supported directors and creditors across South East Queensland through a broad range of formal insolvency procedures, including voluntary administrations, creditors’ voluntary liquidations, court-ordered winding-ups, provisional liquidations, statutory trustee sales, receiverships, and personal insolvency matters.

Directors who sought advice early retained more options; those who arrived after a creditor had already moved often faced a narrower field; liquidation rather than restructuring, full wind-up rather than a deed of company arrangement through a voluntary administration process

Cases where the director's personal financial position was linked to their company's obligations were a recurring feature of the year's work. 

According to Glenn O’Kearney, the priority for firms in FY2027 is to act early. 

“For directors entering FY2027, the priority is to act early, understand the company’s cash flow position and get clear advice before creditor pressure removes options,” GlennO’Kearney said. 

“Early insolvency advice does not mean the business is finished. It often creates room to restructure, negotiate, sell assets in an orderly way, or protect value through a voluntary administration or other formal process. It can also materially improve the director’s personal position, particularly where guarantees, tax debts or related-party exposures are involved.”

Outlook for FY2027

The RBA's decision to hold the cash rate at 4.35 per cent at its June 2026 meeting signals that the current rate cycle has not yet fully unwound. Rate reductions remain a possibility in the second half of 2026, but have not arrived as of 30 June. 

The full effect of the 2025-2026 tightening on business cash flows is still working through, and practitioners expect insolvency volumes to remain elevated through the first half of FY2027.

Construction businesses entering the new year with fixed-price contracts, hospitality operators entering the quieter post-summer trading period, and retailers managing thin margins face the highest near-term risk. 

Directors in these sectors who hold personal assets linked to company debts, which is common among SE-QLD owner-operators, are particularly exposed if their business position deteriorates without warning.

Glenn O’Kearney’s registration as both a registered liquidator and a registered trustee in bankruptcy gives GT Advisory the technical capability to understand both the corporate and personal insolvency issues that often arise for directors. 

While each matter must be assessed for independence and conflict considerations, this dual qualification means directors can receive informed guidance on the broader implications of the company's distress. 

Glenn O’Kearney also provided this piece of advice for business owners when outlining potential hurdles for businesses over the coming 12 months. 

“Compounding these issues are massive domestic regulatory shifts - including tightening ATO enforcement, the introduction of Payday Super mandates, and new laws rendering general interest charges non-deductible,” Mr O’Kearney said. 

“This creates a massive cash flow crunch for businesses. It is precisely why directors who engage a registered practitioner early retain materially more options. Waiting for a creditor to act completely strips away your options, whereas early intervention allows us to navigate these regulatory shifts, protect core business value, and keep alternative restructuring pathways alive."

For any South East Queensland business owner concerned about their financial position heading into FY2027, the consistent message from the year’s work is clear: seek advice from a registered practitioner before the situation narrows your options.

About GT Advisory: 

GT Advisory & Consulting was founded by Principal Glenn O’Kearney in 2016. Previously, Glenn spent more than a decade with two of Australia’s leading corporate restructuring and advisory firms. However, after recognising the need for a more boutique and localised practice on the Gold Coast, GT Advisory & Consulting was born.

We are one of the few accounting practices on the Gold Coast with the qualifications and expertise to navigate the complex areas of insolvency and restructuring, with our professional team having more than 45 years of combined industry experience.  We are dedicated to upholding the highest levels of professionalism and integrity – qualities that shape our approach to every engagement.

For more information or to book a strategic audit, visit gtadvisory.com.au

For all media enquiries, images, or interviews, please contact Glenn O’Kearney e [email protected]u /  p + 61 419 123 260. 

About us:

About GT Advisory: 

GT Advisory & Consulting was founded by Principal Glenn O’Kearney in 2016. Previously, Glenn spent more than a decade with two of Australia’s leading corporate restructuring and advisory firms. However, after recognising the need for a more boutique and localised practice on the Gold Coast, GT Advisory & Consulting was born.

We are one of the few accounting practices on the Gold Coast with the qualifications and expertise to navigate the complex areas of insolvency and restructuring, with our professional team having more than 45 years of combined industry experience.  We are dedicated to upholding the highest levels of professionalism and integrity – qualities that shape our approach to every engagement.

For more information or to book a strategic audit, visit gtadvisory.com.au

 

Contact details:

For more information or to book a strategic audit, visit gtadvisory.com.au

For all media enquiries, images, or interviews, please contact Glenn O’Kearney e [email protected]u /  p + 61 419 123 260.