In the March quarter 2020, bankruptcies were at their lowest level since the December quarter 1990, according to the latest personal insolvency statistics released by the Australian Financial Security Authority (AFSA).
There were 3,168 bankruptcies in the March quarter 2020, a 15.9% fall compared to the March quarter 2019. This fall means that bankruptcies were at their lowest level since the December quarter 1990. There were falls in all states and territories except Tasmania.
Bankruptcies are a subset of personal insolvencies – other types of personal insolvencies include debt agreements and personal insolvency agreements. There were 5,319 total personal insolvencies in the March quarter 2020, a 16.5% fall compared to the March quarter 2019. These were comprised of:
- 3,168 bankruptcies
- 2,113 debt agreements
- 38 personal insolvency agreements.
Just under a quarter (24%) of people who entered a personal insolvency in the March quarter 2020 (1,311) were in business. This includes people who:
- Traded as a sole trader, including as a contractor, sub-contractor or similar,
- Were involved in a partnership
- Were a director / secretary or held a management role in a company.
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.
For more information on the temporary changes to Commonwealth bankruptcy law, visit afsa.gov.au/debtrelief.