Thank you to everyone who participated in AFSA’s survey of personal insolvency practitioners, conducted in October 2021.
This was the third survey with previous ones being completed in June and November 2020. 96 practitioners participated in the latest survey, including 87 trustees and 9 debt agreement administrators, up from 76 in the November 2020 survey.
Since 1 January 2021:
- 23% of respondents had made redundancies (compared to 42% in November 2020)
- 62% of respondents had seen staff leave of their own accord (not asked in previous surveys)
- 23% of respondents had asked staff to take leave (compared to 45% in November 2020)
The majority of respondents (52%) are expecting a decrease in realisations this financial year compared with the 2020-21 year.
Most of the firms that took costs reduction measures did so in 2020 and to a lesser degree in 2021. If there is a significant upturn, some recruitment activity may be necessary.
97% of practitioners are confident they will remain solvent in the next 12 months. Although 20 of these (i.e. 22%) qualified their response on insolvency activity increasing. This compares with 97% in November 2020, with 36% qualifying their response. The vast majority of practitioners (91%) have had no problems complying with legislation while working remotely.
There were mixed responses to the question about expectations of the timing of a significant increase in new personal insolvency work.
If you are facing difficulties due to the COVID-19 pandemic, please contact AFSA for support. You can call 1300 364 785 (and select the menu options 5 and then 3). Alternatively, you can email practitionersupervision [at] afsa.gov.au