The Australian Financial Security Authority today released the personal insolvency activity statistics for the December quarter 2017.
Quarterly personal insolvency activity in Australia*
* From the September quarter 2017, geographic coding of personal insolvency statistics follows a new method.
Personal insolvency in the December quarter 2017
There were 7,578 new personal insolvencies in the December quarter 2017. This is an increase of 7.4% compared to the December quarter 2016.
In year-on-year terms, there were rises in total personal insolvencies in all states and territories in the December quarter 2017.
While debt agreements fell to 3,500 from the record quarterly high of 3,885 in the September quarter 2017, the December quarter 2017 is the tenth consecutive quarter in which debt agreements have increased in year-on-year terms.
Debt agreements in New South Wales reached a record quarterly high of 1,084 debt agreements in the December quarter 2017. There were 51 debt agreements in the Northern Territory (NT) in the December quarter 2017. Debt agreements in the NT also reached this record in the September quarter 2016.
All types of personal insolvencies increased in year-on-year terms in the December quarter 2017:
- bankruptcies increased by 1.3%
- debt agreements increased by 15.3%
- personal insolvency agreements increased by 14.0%. This is the smallest category of personal insolvencies.
Debtors with a business-related personal insolvency
In the December quarter 2017, 17.6% of debtors entered a business related personal insolvency. Where we could identify a specific cause:
- economic conditions (411 debtors) was the most common business related cause
- excessive use of credit (2,198 debtors) was the most common non-business related cause.