Jun 2014 Quarter Stats

Quarterly personal insolvency activity in Australia

Quarterly personal insolvency activity in Australia

Key points

  • Total personal insolvency activity in the June quarter 2014 reached the lowest level since the December quarter 2005.
  • Total personal insolvency activity fell in all states and territories except Western Australia and the Northern Territory in the June quarter 2014 compared to the June quarter 2013.
  • Bankruptcies in the June quarter 2014 reached the lowest level since the June quarter 1995.
  • Bankruptcies fell 25.14% in the June quarter 2014 compared to the June quarter 2013.
  • Bankruptcies fell in all states and territories in the June quarter 2014 compared to the June quarter 2013.
  • The number of debt agreements in the June quarter 2014 is the highest number on record in a quarter. The previous record for a quarter was in the March quarter 2014.
  • Debt agreements in New South Wales, Australian Capital Territory, Queensland and Western Australia in the June quarter 2014 are the highest number on record in a quarter.
  • The rise in debt agreements did not offset falls in bankruptcies and personal insolvency agreements. As a result, total personal insolvency activity fell 9.04% in the June quarter 2014 compared to the June quarter 2013.

Total personal insolvency activity

Total personal insolvency activity fell 9.04% in the June quarter 2014 (6 884) compared to the June quarter 2013 (7 568) and fell 10.07% compared to the March quarter 2014 (7 655).

The fall in total personal insolvency activity in the June quarter 2014 compared to the June quarter 2013 was the result of falls in total personal insolvency activity in:

  • New South Wales (-9.10%)
  • Victoria (-11.41%)
  • South Australia (-27.33%)
  • Queensland (-5.45%)
  • Tasmania (-14.75%)
  • Australian Capital Territory (-6.14%).

These falls were partly offset by increases in:

  • Western Australia (1.65%)
  • Northern Territory (4.35%).

The 9.04% fall in total personal insolvency activity in the June quarter 2014 compared to the June quarter 2013 follows a 6.11% increase in the March quarter 2014 compared to the March quarter 2013.

Total personal insolvency activity in Australia: % change compared to same quarter in previous year

Total personal insolvency activity in Australia: % change compared to same quarter in previous year

Bankruptcies

The number of bankruptcies fell 25.14% in the June quarter 2014 (3 857) compared to the June quarter 2013 (5 152) and fell 21.80% compared to the March quarter 2014 (4 932).

The decrease in bankruptcies in the June quarter 2014 compared to the June quarter 2013 was the result of falls in the number of bankruptcies in all states and territories:

  • New South Wales (-23.81%)
  • Queensland (-22.27%)
  • Victoria (-26.26%)
  • South Australia (-38.04%)
  • Western Australia (-27.76%)
  • Tasmania (-28.06%)
  • Australian Capital Territory (-13.33%)
  • Northern Territory (-4.35%).

The 25.14% fall in bankruptcies in the June quarter 2014 compared to the June quarter 2013 follows an increase of 3.31% in the March quarter 2014 compared to the March quarter 2013.

Bankruptcies in Australia: % change compared to same quarter in previous year

Bankruptcies in Australia: % change compared to same quarter in previous year

Bankruptcies by debtor’s petition and sequestration order by month

The number of bankruptcies on debtor’s petition fell 27.73% in the June quarter 2014 compared to the June quarter 2013 (3 367 compared to 4 659). Eighty seven percent of bankruptcies were on debtor’s petition in the June quarter 2014, a fall from 91% in the June quarter 2013.

Number of bankruptcies on debtor’s petition by month

2012 2013 2014
Number of bankruptcies on debtor’s petition: April

1522

1583

1012

Number of bankruptcies on debtor’s petition: May

1860

1699

1109

Number of bankruptcies on debtor’s petition: June

1433

1377

1246

Number of bankruptcies on debtor’s petition: June quarter

4815

4659

3367

Thirteen percent of bankruptcies were on sequestration orders in the June quarter 2014, an increase from 9% in the June quarter 2013.

Number of bankruptcies on sequestration order by month

2012 2013 2014
Number of bankruptcies on sequestration order: April

201

143

160

Number of bankruptcies on sequestration order: May

191

178

177

Number of bankruptcies on sequestration order: June

156

162

149

Number of bankruptcies on sequestration order: June quarter

548

483

486

Note: Our total bankruptcy statistics include administrations under Part XI of the Bankruptcy Act – the administration of the estate of a deceased person.

Debt agreements

The number of debt agreements in the June quarter 2014 is the highest number on record in a quarter, following the previous record in the March quarter 2014. The number of debt agreements increased 27.09% in the June quarter 2014 (2 979) compared to the June quarter 2013 (2 344) and rose 11.24% compared to the March quarter 2014 (2 678).

The increase in debt agreements in the June quarter 2014 compared to the June quarter 2013 was the result of increases in the number of debt agreements in all states and territories:

  • Queensland (33.70%)
  • New South Wales (22.19%)
  • Victoria (25.71%)
  • Western Australia (55.91%)
  • South Australia (8.55%)
  • Tasmania (8.97%)
  • Northern Territory (13.04%)
  • Australian Capital Territory (3.77%).

The 27.09% rise in debt agreements in the June quarter 2014 compared to the June quarter 2013 follows a rise of 12.71% in the March quarter 2014 compared to the March quarter 2013.

Debt agreements in Australia: % change compared to same quarter in previous year

Debt agreements in Australia: % change compared to same quarter in previous year

Personal insolvency agreements

Personal insolvency agreement activity shows higher volatility than bankruptcies and debt agreements due to the smaller numbers recorded each quarter. Personal insolvency agreements comprised 0.70% of total personal insolvency activity in the June quarter 2014.

The number of personal insolvency agreements fell 33.33% in the June quarter 2014 (48) compared to the June quarter 2013 (72) and increased 6.67% compared to the March quarter 2014 (45).

The fall in personal insolvency agreements in the June quarter 2014 compared to the June quarter 2013 was the result of decreases in the number of personal insolvency agreements in:

  • Victoria (-60.71%)
  • New South Wales (-33.33%)
  • Queensland (-15.38%)
  • Australian Capital Territory (fell to zero debt agreements in the June quarter 2014).

These falls were partly offset by a rise in Western Australia (42.86%). There was no change in the Northern Territory, South Australia and Tasmania.

The 33.33% fall in personal insolvency agreements in the June quarter 2014 compared to the June quarter 2013 follows a fall of 29.69% in personal insolvency agreements in the March quarter 2014 compared to the March quarter 2013.

Personal insolvency agreements in Australia: % change compared to same quarter in previous year

Personal insolvency agreements in Australia: % change compared to same quarter in previous year