Rate of return

Bankruptcies

Contributions and dividends – bankruptcies

In 2018–19, trustees (including the Official Trustee and registered trustees) administered over $50 million in contributions from 6,030 bankruptcies. This includes voluntary contributions.

Trustees declared and paid dividends in 2,556 bankruptcies in 2018–19. These dividends returned over $85 million to creditors.

 

Administered by the Official Trustee: 2018–19

Administered by registered trustees: 2018–19

Number of bankruptcies in which contributions were paid*

2,260

3,770

Value of contributions ($)*

$14,191,110

$39,156,851

Number of bankruptcies in which dividends (interim and final) were declared and paid

1,422

1,134

Value of dividends ($)

$18,509,827

$67,389,488

* Includes voluntary contributions.

Rate of return – bankruptcies

There were 17,982 bankrupt estates finalised in 2018–19. Unsecured creditors received an average of 1.84 cents for every dollar they were owed.

The following table shows the average rate of return in bankrupt estates. An insolvency proceeding is reported as one administration regardless of whether there are multiple debtors. Each partner in the insolvency proceeding has an estate.

 

Official Trustee: 2018–19

Registered trustees: 2018–19

Total: 2018–19

Number of estates finalised during the year

13,801

4,181

17,982

Number of finalised estates that have paid a dividend

934

987

1,921

Percentage of finalised estates that have paid a dividend

6.77%

23.61%

10.68%

Average rate of return for unsecured creditors in dividend paying estates (cents per dollar)

7.21

12.02

10.55

Average rate of return for unsecured creditors in all finalised estates (cents per dollar)

0.91

2.53

1.84

Debt agreements

Estimated rate of dividends

The most common estimated rate of dividend in a debt agreement proposal in 2018–19 was between 61 and 70 cents per dollar owed. This was consistent with previous years. In 2018–19, 90% of these proposals became debt agreements.

Estimated rate of dividend (cents per dollar)

Number of debt agreement proposals accepted by the Official Receiver

Number of debt agreements made

Proportion of debt agreement proposals that became debt agreements

Less than 31 cents

510

420

82.4%

31–40 cents

1,052

887

84.3%

41–50 cents

2,471

2,175

88.0%

51–60 cents

3,076

2,714

88.2%

61–70 cents

5,284

4,740

89.7%

71–80 cents

643

561

87.2%

81 cents or more

68

52

76.5%

Total

13,104

11,549

88.1%

Dividends paid in completed debt agreements

Creditors received an average of 53.52 cents per dollar owed in debt agreements completed in 2018–19.

State or territory

Number of debt agreements finalised

Value of creditor claims ($)

Value of dividends paid ($)

Rate of return (cents per dollar)

NSW

2,492

$91,252,688

$48,764,054

53.44

ACT

144

$5,168,870

$2,791,195

54.00

Vic

1,576

$58,454,950

$30,999,182

53.03

Qld

2,292

$79,221,426

$42,739,133

53.95

SA

400

$13,957,707

$7,273,566

52.11

NT

69

$2,183,118

$1,270,978

58.22

WA

657

$23,054,356

$12,552,655

54.45

Tas

238

$8,367,192

$4,349,545

51.98

Total

7,868

$281,660,305

$150,740,307

53.52

Personal insolvency agreements

There were 216 personal insolvency agreement estates finalised in 2018–19 by registered trustees. Unsecured creditors received an average of 2.47 cents for every dollar they were owed. There were no personal insolvency agreement estates finalised by The Official Trustee in 2018–19. The Official Trustee only administers personal insolvency agreements when a registered trustee resigns, is deregistered or dies.

The following table shows the average rate of return in personal insolvency agreement estates. An insolvency proceeding is reported as one administration regardless of whether there are multiple debtors. Each partner in the insolvency proceeding has an estate.

 

Registered trustees: 2018–19

Number of estates finalised during the year

216

Number of finalised estates that have paid a dividend

191

Percentage of finalised estates that have paid a dividend

88.43%

Average rate of return for unsecured creditors in dividend paying estates (cents per dollar)

4.51

Average rate of return for unsecured creditors in all finalised estates (cents per dollar)

2.47