Following my October 2024 report, below, that personal insolvencies dropped in number in each of July, August and September 2024, AFSA has now reported the numbers have continued that fall, if only slightly, in October 2024. Provisional personal insolvencies decreased in October 2024 | Australian Financial Security Authority
In October 2024, there were 1,009 new personal insolvencies, dropping from 1,025 in September 2024.
Of these, 605 were bankruptcies, 391 were debt agreements, 11 were personal insolvency agreements, and two were insolvent deceased estates.
Where AFSA could identify the industry in which an individual worked, the most common industries were construction, health care and social assistance and retail.
Over 42% of bankruptcies were business related, including directors of companies in respect of personal liabilities following their company’s liquidation or restructuring.
There were well under 12,000 personal insolvencies in 2023-24. While AFSA has predicted an increase for 2024-2025 to 14,850, or around 1,237 per month, on current figures (for 4 months), the number could well be under 12,500.
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31 October 2024
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
