As we begin a new financial year, I want to thank our stakeholders for their ongoing partnership in supporting confidence in Australia's insolvency and personal property securities systems.
Trust in a changing environment
The past year reinforced a simple but important truth: trust underpins the credit system.
Against a backdrop of global uncertainty, cost-of-living pressures and declining financial resilience for some Australians, maintaining confidence in the systems we regulate has remained AFSA's central focus.
What we're seeing in the system
Personal insolvencies increased during 2025–26 as financial pressures continued to affect households and small businesses although levels remain well below the long-term average of 25,000.
Our data also points to growing vulnerability among some cohorts, particularly younger Australians, renters and those working in construction and labour-intensive industries. At the same time, increasing complexity across the credit ecosystem highlights the importance of effective regulation, trusted information and strong collaboration.
How AFSA responded
Throughout the year, AFSA focused on the harms that pose the greatest risk to system integrity. We strengthened oversight of insolvency proposals, practitioner conduct and debt agreements, while taking decisive action in significant matters such as Hartnett and Adgemis.
We also improved the quality of the Personal Property Securities Register through a major data clean-up program that removed more than 200,000 outdated registrations.
Key achievements this year
During the year, AFSA:
- Increased scrutiny of personal insolvency proposals and escalated matters presenting heightened risks to creditors and system integrity.
- Continued targeted action against misuse of insolvency processes, including significant interventions in the Hartnett and Adgemis matters.
- Strengthened oversight of registered trustees through audits, compliance reviews, show-cause processes and enforcement action.
- Published AFSA's Vulnerability Strategy and toolkit and expanded work to protect Australians experiencing financial hardship.
- Released the Inspector-General in Bankruptcy Practice Guide (IGPG) Gambling Offences.
- Continued to strengthen the capability, diversity and sustainability of the personal insolvency profession, including increasing AFSA's target for allocating estates to female trustees from 20% to 25%.
- Completed an agency-wide program to uplift and strengthen our regulatory capability, deepening our understanding of compliance and risks - and laying the foundation for AFSA's future stewardship role.
- Published new demographic, insolvency and system insights to improve understanding of financial vulnerability and emerging risks.
- Delivered a major PPSR data quality initiative, removing more than 200,000 outdated registrations and supporting continued strong growth in PPSR usage.
- Received external recognition for AFSA's digital services and websites, reflecting our focus on accessibility, service delivery and user experience.
Working together
Strong systems depend on strong partnerships.
Over the past year, AFSA engaged extensively with practitioners, industry, community organisations and government through the AFSA Summit, Financial Counselling Australia Conference, ARITA National Conference, AIIP National Conference, AFIA Summit, CEDA forums, stakeholder consultations and roundtables.
These engagements help ensure our regulatory approach remains informed, practical and focused on achieving better outcomes for the community.
Looking ahead
On 2 July 2026, AFSA released its 2026–27 Regulatory Action Statement, identifying three priority harms:
- manipulation of personal insolvency proposals
- harmful debt agreement practices
- misuse of the Personal Property Securities Register.
These priorities reflect where we believe targeted regulatory action can have the greatest impact on trust, confidence and system integrity.
AFSA will be supporting the Productivity Commission’s inquiry into reducing barriers to business dynamism. Ensuring Australia’s insolvency systems remain a safety net for failure but also support investment and entrepreneurial activity.
Thank you
On behalf of AFSA, I would like to thank our staff, regulated entities and practitioners, industry partners, financial counsellors, consumer advocates, government colleagues, international partners and stakeholders across Australia for your continued engagement and support.
Tim Beresford
Chief Executive and Inspector-General in Bankruptcy
Australian Financial Security Authority
