The Australian Financial Security Authority today released the personal insolvency activity statistics for the March quarter 2017.
Personal insolvency in the March quarter 2017
There were 7,900 new personal insolvencies in the March quarter 2017. This is an increase of 10.8% compared to the March quarter 2016. All states and territories shared in this rise.
Western Australia led the increase, reaching a record high of 928 personal insolvencies in the March 2017 after a year-on-year increase of 197 personal insolvencies (26.9%).
By type of personal insolvency:
- bankruptcies increased by 2.5%
- debt agreements increased by 20.8%
- personal insolvency agreements increased by 139.5%.
Debt agreements continue to increase by number and proportion of total insolvencies. This type reached a record high of 3,584 in the March quarter 2017 and increased to 45.4% of total personal insolvencies from 41.6% the previous year. Debt agreements reached record highs in Victoria, Queensland, South Australia and Western Australia in the March quarter 2017, and increased in all other states and territories.
Debtors with a business-related personal insolvency
In the March quarter 2017, 16.5% of debtors entered a business related personal insolvency. This is an increase from 16.1% in the March quarter 2016.
In the March quarter 2017:
- economic conditions (392 debtors) was the most common business related cause
- excessive use of credit (2,387 debtors) was the most common non-business related cause.