The Australian Financial Security Authority today released the personal insolvency activity statistics for the December quarter 2016.
Personal insolvency in the December quarter 2016
Total personal insolvencies increased by 0.9% in the December quarter 2016 compared to the December quarter 2015. This rise was driven by increases in Western Australia (26.2%), Australian Capital Territory (14.8%) and Queensland (0.7%).
By type of personal insolvency:
- bankruptcies fell by 4.9%
- debt agreements increased by 9.5%
- personal insolvency agreements increased by 4.9%.
Debt agreements in the December quarter 2016 are the fourth highest on record, with 3,036 debt agreements. The highest on record was in the June quarter 2016 (3,329 debt agreements). Debt agreements reached a record high in South Australia in the December quarter 2016.
Debtors with a business-related personal insolvency
In the December quarter 2016, 17.7% of debtors entered a business related personal insolvency. This is a fall from 18.4% in the September quarter 2016.
In the December quarter 2016:
- economic conditions (411 debtors) was the most common business related cause
- unemployment or loss of income; and excessive use of credit (both with 1,873 debtors) were the most common non-business related causes.