It comes as external administrations reached a record high in March.

CreditorWatch has more than 15,000 records of Australian businesses that owe the Tax Office more than $100,000.

The credit bureau found about 24 per cent of those debts belong to businesses in the construction industry, followed by 13 per cent in professional, scientific and technical services and 11 per cent in food and beverage services.

Of the construction tax debts, about 70 per cent are from the construction services sector, mostly small sub-contractor businesses, CreditorWatch found.

Building construction made up 26 per cent of the group, while heavy and civil engineering construction made up about 3 per cent.

CreditorWatch chief economist Anneke Thompson said these debts may be significant for small construction businesses.

"These businesses often have debt secured against personal assets, and debts of $100,000 or more would be a severe imposition on their ability to meet their ongoing financial obligations," she said.

CreditorWatch found external administrations across all Australian businesses were up 22.1 per cent year-on-year.

The surge was reflective of increased cost pressures for businesses and consumers, CreditorWatch CEO Patrick Coghlan said.

"Most businesses, particularly those that are consumer facing and therefore exposed to the vagaries of discretionary spending, are currently being hit by a range of heavy impacts," he said.

Mr Coghlan said he did not expect business conditions to improve significantly until consumer spending increased, which was dependent on a decline in interest rates.

Those hopeful of a rate cut have been warned not to get their hopes up, as economists predict interest rates are unlikely to fall until at least the end of 2024.