Annual bankruptcies at a 30 year low

The Australia Financial Security Authority today released the personal insolvency statistics for 2019–20 and June quarter 2020.

These statistics cover the three types of personal insolvencies: bankruptcies, debt agreements and personal insolvency agreements. Debt agreements and personal insolvency agreements are legally binding agreements for somebody who is insolvent to pay their creditors an agreed amount.

Personal insolvencies in 2019–20

In 2019–20, bankruptcies fell to their lowest annual level since 1989–90. There were 12,450 bankruptcies in 2019–20, an 18.8% fall from last year. There were falls in all states and territories. Bankruptcies in South Australia and Tasmania reached their lowest annual levels since records began in 1986–87.

There were 8,147 debt agreements in 2019–20, a fall of 29.5% from last year. There were falls in all states and territories. Debt agreements are at their lowest annual level since 2010–11.

There were 20,762 total personal insolvencies in 2019–20, a fall of 23.3% from last year. Total personal insolvencies are at their lowest annual level since 1995–96. South Australia reached its lowest annual level since records started in 1986–87.

Personal insolvencies in June quarter 2020

In the June quarter 2020, the number of new personal insolvencies fell 35.1% compared to the June quarter 2019. There were falls in all states and territories.

There were 2,205 bankruptcies in the June quarter 2020, a 42.4% fall compared to the June quarter 2019. There were falls in all states and territories.

There were 1,990 debt agreements in the June quarter 2020, a 25.0% fall compared to the June quarter 2019. There were falls in all states and territories.

In the June quarter 2020, 23.2% of new debtors entered a business related personal insolvency. The highest proportion was in Western Australia (26.4%).

Read more about personal insolvency statistics and business and non-business statistics.

If you have any further questions about this media release, or AFSA statistics, please contact the AFSA media team. Please note that AFSA does not provide commentary on the statistics themselves.