New personal insolvencies across Australia increased modestly to 12,257 in 2024–25, up from 11,644 in 2023–24, an increase of 5.3%, according to annual statistics released by the Australian Financial Security Authority (AFSA).
Location data shows personal insolvencies rose in New South Wales, Victoria, Queensland, Western Australia and Tasmania, while volumes dropped in South Australia, the Northern Territory and the Australian Capital Territory.
Business-related personal insolvencies accounted for 28.8% of all new personal insolvencies in 2024–25, up 2.6% from the previous financial year (26.2%).
AFSA Chief Executive and Inspector-General in Bankruptcy, Tim Beresford, said:
“While Australian households continued to experience financial pressures in 2024-25, personal insolvencies remained near their historic lows.
“Three trends have driven the fall in personal insolvencies in recent years – changed creditor behaviour after the Hayne Royal Commission, changed debtor behaviour during the COVID-19 pandemic and low unemployment.
“As a result, we have seen personal insolvencies fall from around 32,000 to their current levels in the past 8 years.
“In addition, AFSA has taken a more proactive regulatory posture across our education, compliance and enforcement activities, targeting key harms to maintain the integrity of, and public trust in, the personal insolvency system - and deliver fair outcomes for all Australians.
"One of our key priorities is ensuring individuals are aware of their rights, including access to free advice.
"I encourage Australians experiencing financial difficulty to reach out to trusted sources early. “There are free professional services available to help find a solution that works for different circumstances.
"The AFSA website is a great starting point. It offers clear, practical resources and connects people with qualified professionals who can support them. Financial counsellors and registered insolvency professionals can help to review individual situations and guide an appropriate response.”
Where to seek help:
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 moneysmart.gov.au
- More information about these statistics is available at Financial year personal insolvency statistics.
Summary of national figures:
2024–25 financial year:
- 6,930 were bankruptcies
- 5,093 were debt agreements
- 210 were personal insolvency agreements
- 24 were insolvent deceased estates
Of the 12,257 new insolvencies in the 2024–25 financial year, 3,536 personal insolvencies were business-related, up from 3,046 in the 2023–24 financial year.
