Personal insolvencies are continuing to fall in Australia, with a total of 9,545 new insolvencies recorded in the 2021-22 financial year – down 10% from 2020-21.
New figures from the Australian Financial Security Authority (AFSA) revealed that insolvency numbers fell in every state and territory except Tasmania, which recorded an increase of almost 13% from the previous year.
Of the new insolvencies in 2021-22, 63% were bankruptcies and 36% were debt agreements. The remainder were personal insolvency agreements and deceased estates.
AFSA Chief Executive Tim Beresford noted that while numbers are at an historic low, overall there are signs of increased insolvency activity.
‘In the June quarter, we saw 2,301 new personal insolvencies nationally – up from 2,215 in the March quarter,’ Mr Beresford said.
‘It’s no secret that Australia is facing ongoing economic challenges and we know this is likely to impact some individuals.
‘We expect there will be a reversion towards pre-pandemic volumes over the next two years.’
Mr Beresford also highlighted the importance of understanding the options available when facing financial hardship.
‘We know there are still challenging conditions ahead for many Australians,’ Mr Beresford said.
‘If you are in financial difficulty, please seek advice early from a trustworthy source.’
‘A financial counsellor or registered insolvency professional can talk through your options and help you find a solution to suit your circumstances.’
‘For some individuals, that may be a formal insolvency option while for others, it might be temporary relief or payment arrangements.’ More information about Australia’s personal insolvency statistics is available on the AFSA website.
Further information about seeking help to deal with unmanageable debt is available at afsa.gov.au.