Figures released today by the Australian Financial Security Authority (AFSA) show personal insolvencies across Australia have continued to increase, as forecasted.
A total of 3,596 new personal insolvencies were recorded in the 3-month period to June 2026, compared to 3,179 in June 2025. This is a 13.1% increase compared to the same period last year. Debt agreements increased 17.1% and bankruptcies increased 9.6%.
New South Wales recorded the highest number of new personal insolvencies in the quarter (1,085), followed by Queensland (944) and Victoria (787). Bankruptcies were the most common type of personal insolvency across all states and territories, except Western Australia and the Northern Territory, where debt agreements were the most prevalent type.
Those living in capital city regions entered personal insolvency at a higher rate compared to their country counterparts in all states except Tasmania.
Of the new personal insolvencies recorded during the period, over a quarter (30.4%) reported business involvement*.
AFSA Chief Executive and Inspector-General in Bankruptcy Tim Beresford said
“The data reinforced AFSA’s decision to target harmful debt agreement advice in our 2026–27 Regulatory Action Statement.
“We know the average person entering into a debt agreement is a 34-year-old woman who works in health care or social services and is renting.
“Around half of all debt agreements involve debts of less than $50,000. That's often the equivalent of a couple of credit cards, a personal loan and a handful of Buy Now Pay Later agreements.
“These figures show that many people entering debt agreements are dealing with relatively modest levels of debt and may be particularly vulnerable when seeking help.
“They are trying to do the right thing by their creditors, but too often receive poor or harmful advice, are placed into unsuitable arrangements, or are charged fees that further worsen their financial position.
“That is why monitoring debt agreement providers and advice practices is a key focus of our 2026–27 Regulatory Action Statement.”
Where to get help
Australians experiencing financial difficulty are encouraged to seek help early from trusted sources to assist individuals find a solution that works for their circumstances.
Financial counsellors and registered insolvency professionals can help review individual situations and plan an appropriate response.
Free confidential assistance is available through the National Debt Helpline or via phone at 1800 007 007.
- For help with budgeting, Money Smart has some easy-to-use tools available at gov.au
Mr Beresford said the June quarter figures highlight the importance of early intervention and access to trusted advice.
“While personal insolvencies continue to increase, there are options available to help people manage financial difficulties. Seeking independent advice early can help individuals understand their choices and find a solution that is appropriate for their circumstances.”
More information about these statistics is available at Quarterly personal insolvency statistics.
