Insolvency, debt agreements and bankrupcy continued to grow this year: AFSA

There were 31,859 personal insolvencies in 2017–18, which is the largest annual number of personal insolvencies since the record of 36,539 set in 2009–10, according to the latest report from AFSA the Australian Financial Security Authority.

The number of personal insolvencies rose by 5.6% in 2017–18 compared to 2016–17. 

Comprised of a 3% increase in bankruptcies, a 9.1% increase in debt agreements and a decrease in personal insolvency agreements of 12.3%.

Personal insolvencies reached record annual levels in Northern Territory and Western Australia in 2017–18.

The 14,834 new debt agreements in 2017–18 was the highest annual number on record, and represents the seventh consecutive annual increase.

Debt agreements were at record annual levels in all states and territories except Tasmania.

There were 214 new personal insolvency agreements in 2017–18, a fall of 12.3% from 244 in 2016–17.

Personal insolvency agreements fell to a record annual low in Victoria.

Personal insolvencies reached record annual levels in Northern Territory (352) and Western Australia (4,020) in 2017–18.

Bankruptcies jumped to 16,811 in Australia in 2017–18, an increase of 3.0% from 16,320 in 2016–17.

The annual rise in bankruptcies is the largest since 2008–09, with the only other rise of 0.2% occurring in 2015–16.

Despite this rise, the number of bankruptcies is below 2008–09, when there were 27,520 bankruptcies.

The annual rise in bankruptcies in 2017–18 was the result of increases in the Northern Territory (31.7%); Tasmania (11.0%); Western Australia (10.6%); New South Wales (3.0%); Queensland (2.9%); South Australia (0.6%).

These increases were partly offset by falls in the Australian Capital Territory (5.6%) and Victoria (5.4%).

Bankruptcies reached an annual record high of 158 in the Northern Territory this year.

There were 14,834 new debt agreements in 2017–18, an increase of 9.1% from 13,597 in 2016–17.

This is the highest annual number of debt agreements on record and represents the seventh consecutive annual increase.

Debt agreements have increased as a proportion of total personal insolvencies from 23.4% to 46.6% since 2008–09.

Debt agreements increased in 2017–18 compared to 2016–17 in all states and territories.

All states and territories reached record annual highs except for Tasmania.

There were 332 debt agreements in Tasmania, two less than the record level of 334 set in 2012–13.