Current corporate insolvency trends are painting a very interesting landscape, which may be of surprise to some people.
The latest official figures released by the Australian Securities & Investments Commission (ASIC) reveal that corporate insolvencies have reached a record high with 1532 companies being declared insolvent during February this year. In comparison to the same period in the 2010/11 financial year, this shows a marked increase of 233 corporate insolvencies (15%).
ASIC records going back to the last decade show that 2011 was a record year with 15,142 companies entering into official insolvency and also shows that historically the February 2012 figure was the highest ever for that month.
In a state breakdown, the analysis shows that New South Wales (NSW) led with a line share of 618 businesses out of the 1532 for the month of February, which attributes a whopping 40%. Next in line with 24% respectively was Queensland (QLD) with 374 and was closely followed by 368 in Victoria (VIC). The other states contributed a marginal figure of 10% collectively to the national total.
New South Wales’ figure of 618 is incredibly more than double than the figure recorded for the previous month in January 2012.
Turning to personal insolvency statistics there is now some revealing and remarkable demographic data on those who are affected on a postcode basis. It is the first time that government agency, Insolvency and Trustee Service Australia (ITSA) has released such data publically.
Incredibly a similar pattern can be observed to that of corporate insolvency figures. NSW is home to the largest proportion of people who became bankrupt or proposed a debt agreement or personal insolvency agreement in the 2010/11 financial year, at 35%. Following in at 28% is QLD and coming in third is VIC with 20%.
In NSW the highest ranking postcode for personal insolvency was 2560 which is deemed as being Campbelltown which is located 47km from Sydney.
QLD saw the postcode 4350 in the Toowoomba locality with the majority of personal insolvency files and is located some 114km from Brisbane.
VIC notes postcode 3977, Cranbourne as being at the top of the list and is 47km from Melbourne.