June quarter sees uptick in personal involvencies, AFSA data reveals
Personal insolvencies have risen in the June quarter this year with around a quarter of the insolvencies business-related, according to the Australian Financial Security Authority.
Personal insolvency numbers have increased in the 2024 June quarter compared to the 2023 June quarter, the latest Australian Financial Security Authority (AFSA) data has revealed.
Personal insolvencies increased by 8.9 per cent this June quarter compared to the same period last year.
This year there were 2,947 personal insolvencies during the three-month period, up from 2,705 last June.
Of these insolvencies, 793 were business-related, equating to 26.9 per cent.
Within the quarter, there were 1,704 bankruptcies, 1,181 debt agreements, 61 personal insolvency agreement and one deceased estate.
According to AFSA, national data shows personal insolvencies rose in all states and territories when compared to the June quarter 2023, except for Western Australia and Tasmania where the number declined.
NSW saw the largest number of personal insolvencies at 850, followed by Queensland at 731, Victoria at 605 and Western Australia with 232.
South Australia had 164 personal insolvencies during the recent June quarter, while Tasmania had 75 and the Northen Territory had 46.
Overall, most personal insolvencies to occur across Australia were recorded in capital cities compared to regional areas.
Company insolvencies has also seen a significant increase recently, with the latest ASIC statistics indicating that Australia has already experienced 1,329 business insolvencies since the beginning of July.
The construction sector has experienced the largest number of insolvencies in the last three years, with 345 occurring this financial year.
This number has seen a slight uptick since last year, with 344 construction insolvencies having occurred in August 2023 and 231 in August 2022.
Following construction, the accommodation and food services industry has also experienced a large number of insolvencies over the last three years, with a significant increase this year.
AFSA said individuals should seek support and advice as soon as possible if experiencing financial hardship.
“Australians experiencing financial difficulty are encouraged to seek help early from trusted sources to assist individuals find a solution that works for these circumstances,” AFSA said.
“Financial counsellors and registered insolvency professional can help to review individual situations and help plan an appropriate response.”
If facing personal insolvency, assistance is available through the National Debt Helpline.
