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Insolvency instances increasing Australia-wide

Australia

As Australians struggle with discretionary purchases, new research has been released that shows some regions are experiencing a 60 per cent rise in insolvency.

The Australian Financial Security Authority (AFSA) has released the regional insolvency statistics for the June quarter 2019, which showed that the only area Australia-wide that did not have an increase in insolvency cases over the quarter was Greater Perth.

Greater Hobart fared the worst, with a 63 per cent increase in debtors entering into personal insolvency, a result of 33 new cases and lifted the region to 85 people.

Greater Sydney saw an 8 per cent increase in debt applications, with 88 new personal insolvency matters filed, bringing the total number of insolvent persons to 1,170.

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Campbelltown led the region, accounting for 84 of the total 88 personal insolvencies filed.

Both the ACT and Darwin recorded insolvency figures higher than 5 per cent, the statistics showed, with Darwin recording three new cases, bringing the total number of insolvent individuals to 60.

Canberra saw nine new filings for personal insolvency, with its total of bankrupt residents rising now to 80.

Greater Melbourne (17 new cases), greater Adelaide (11 new cases) and greater Brisbane (three new cases) also saw insolvency increases, despite this being by less than 5 per cent across each of the metropoles.

Perth was the only capital city where new debt filings fell, with 68 less cases reported in the June quarter when compared with the previous quarter.

Excluding Darwin, the rest of the Northern Territory also had a reduction in rates of insolvency with nearly 28 per cent less reported cases.

The new findings sit in stark contrast with recent AFSA research that reported bankruptcy administrations at a 24-year low.  

Nest Egg has previously reported on the factors sending Australians broke.

Insolvency instances increasing Australia-wide
Australia
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Cameron Micallef

Cameron Micallef is a journalist at Nest Egg, writing primarily about personal wealth and economic markets. 

Prior to this, Cameron worked for Australian Associated Press. He graduated from the University of Wollongong with a double degree in communications and commerce.

You can contact him on: This email address is being protected from spambots. You need JavaScript enabled to view it.

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