Thank you to everyone who participated in our recent survey of personal insolvency practitioners.
The survey asked further questions about the health of the industry during the challenges presented by COVID-19.
The results indicated that 97% of respondents are confident they will remain solvent in the next 12 months while 10% are very concerned about their viability, up from 5% from the similar survey conducted in June.
There is a high level of uncertainty about the timing of any upswing in work with 35% of practitioners unable to say if and when it will occur, with RDAAs expecting it to occur earlier than RTs. More than 47% of RDAAs are expecting an upturn in the first half of 2021 compared with 27% of RTs.
From a staffing perspective, the following is worth noting:
- The percentage of practitioners whose firms had made staff redundant has increased since the June survey from 27% to 42%.
- The percentage of practitioners whose firms have asked staff to take leave has increased from 27% to 46%
- The percentage of practitioners with staff on JobKeeper increased from 63% in June to 68%
About 89% of practitioners believe their firm will have the capacity to significantly increase their numbers of new matters if insolvencies increased at the end of 2020 or in 2021. This compares to 85% in the June survey.
If you are facing difficulties due to COVID-19, please contact AFSA for support. You can call 1300 364 785 (and select the menu options five and then three), or email us at regulation [at] afsa.gov.au.