Personal insolvencies across Australia have increased in the June quarter 2023, according to new statistics released today by the Australian Financial Security Authority (AFSA).
There were 2,705 new personal insolvencies in the 3-month period to June 2023 – up from 2,301 in June 2022.
National data shows personal insolvencies rose in all states and territories, except for South Australia and Western Australia where numbers remained steady.
Of the June quarter 2023 personal insolvencies, just over a quarter were business-related (730).
There was a total of 9,930 personal insolvencies in the 2022–23 financial year – around 4% higher than the 2021–22 annual figure of 9,545.
Ignatius McBride, AFSA’s Chief Data Analytics & Intelligence Officer, said that the increases reflect the expected gradual return to average levels following record-low numbers.
‘We have seen historical lows in personal insolvencies in recent years, particularly during 2021–22 following targeted economic responses to the pandemic from industry and government,’ Mr McBride said.
‘This marginal national increase is in line with forecasts, as we expect to see personal insolvencies revert towards the 10-year average in the next 2 years.’
AFSA Chief Executive Tim Beresford reminded Australians experiencing financial difficulty to seek help early from trusted sources.
‘Many Australians are facing challenging financial times,’ Mr Beresford said.
‘If you are in financial difficulty, there is help available and we urge you to seek trusted advice to help find a solution that works for your circumstances.’
‘Financial counsellors and registered insolvency practitioners can review your individual situation and help you to better understand the options available to help make a fresh start financially.’
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 our statistics is available at afsa.gov.au/statistics.
Summary of national figures:
June quarter 2023:
- 1,569 were bankruptcies
- 1,099 were debt agreements
- 35 were personal insolvency agreements
- 2 insolvent deceased estates
- 730 personal insolvencies were business-related – up from 558 from June 2022.
2022-23 financial year figures:
- 5,844 were bankruptcies
- 3,942 were debt agreements
- 121 were personal insolvency agreements
- 23 insolvent deceased estates
- 2,435 personal insolvencies were business-related – up from 2,327 from 2021-22.
