AFSA reports that “personal insolvencies increased in May 2024”. They did – by 3 more than in April 2024.
Personal insolvency numbers increased by only 3 more in May 2024 (1049) than in April 2024 (1046), and only 18 more than in May 2023 (1031). Provisional personal insolvencies increased in May 2024 | Australian Financial Security Authority (afsa.gov.au)
Bankruptcies arising from a business were close to 38%. According to statistics gathered by the Small Business Ombudsman, most small businesses – 60% – are operated through individuals, with companies, often supported by personal guarantees, the remainder.[1] Hence the continuing significant proportion of business bankruptcies. Small business and consumer insolvency reforms proposed in February 2021[2] have not proceeded; nor has there been a response to the recommendations of the 2023 PJC Report on Corporate Insolvency.
As I said in an earlier post, personal insolvency numbers were only 9,930 in 2022–23. AFSA has said that the numbers in 2023-24 could be around 12,250. With the year to date total of July 2023-May 2024 being 10,792, it is unlikely that June 2024 will reach 1458 to meet that prediction. The total will be higher than last year but still below the long-term average of 23,100.
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[1] June Newsletter – Celebrating small business (asbfeo.gov.au)
[2] The bankruptcy system and the impacts of coronavirus | Attorney-General’s Department (ag.gov.au)
