Personal insolvencies in Australia have continued to fall, if slowly, with 1025 new personal insolvencies in September 2024 dropping from 1,119 in August 2024, which itself was a fall from 1157 in July 2024. Provisional personal insolvencies decreased in September 2024 | Australian Financial Security Authority
There were under 12,000 personal insolvencies in 2023-24. AFSA predicts an increase for 2024-2025 to 14,850, or around 1,237 per month, but averaging 1,100 so far. All well below the 37,000 of some years ago.
In September 2024, over 45% were non bankruptcy arrangements, that is debt agreements and personal insolvency agreements.
Over 42% of bankruptcies involved the debtor having operated a business as a sole trader, or in partnership, or as a director in a company that may have gone into liquidation or some restructuring process under the Corporations Act. The percentage was 63.4% for personal insolvency agreements. Most industries showed a decline in personal insolvencies, including construction, but retail increased.
A recent speech by the AFSA Chief Executive on 17 October 2024[1] gives useful insights into the changing nature of personal insolvency, evidenced in part by the falling numbers, and based on trends such as low unemployment.
See also Insolvency trends – should they be higher? – Murrays Legal
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[1] Tim Beresford at the 2024 Australian Institute of Credit Management (AICM) National Conference. AFSA Chief Executive speech at the 2024 AICM National Conference | Australian Financial Security Authority
