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Personal insolvencies fell in Australia, with a total of 2,321 new insolvencies recorded in the December quarter 2022 – down 3.6% from the December quarter 2021.
New figures from the Australian Financial Security Authority (AFSA) revealed that insolvency numbers fell in every state and territory compared to the same period last year – except Victoria, Northern Territory and the Australian Capital Territory which recorded an increase of 4.7%, 38.9% and 12.0% respectively.
Of the new insolvencies in the December quarter 2022, 57.9% were bankruptcies and 40.4% were debt agreements. The remainder were personal insolvency agreements and deceased estates.
In addition to decreased year-on-year insolvencies, AFSA statistics are also showing a gradual drop in insolvencies in recent months – with a 3.7% decrease in new insolvencies compared to the September quarter 2022.
In the December quarter 2022, 36.8% of bankruptcies were business related, a rise from 35.7% in the September quarter 2022.
While recent numbers are dropping, forecasting shows that personal insolvencies are expected to gradually return to pre-COVID levels within the next two years.
Financial counsellors and registered insolvency professionals can help individuals review their situation, understand their options and plan an appropriate response. For some people, insolvency may present the best opportunity for a fresh start financially.
More information about Australia’s personal insolvency statistics is available on the AFSA website.
AFSA’s State of Personal Insolvency report is now available to download.
Further information about seeking help to deal with unmanageable debt is available at afsa.gov.au.