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01 Nov 2013

Personal insolvency activity declining at a slower rate

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2 min

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Last month the Australian Financial Security Authority (AFSA) released the personal insolvency activity statistics for the September 2013 quarter.

They reveal that personal insolvency on the whole is still on the decline which perpetuates the trend established in the 2012/13 annual statistics released in July. Worrells observed back then, that the numbers of bankruptcies were on the decline at 5% nationally.

An analysis of these statistics for the September 2013 quarter when compared to that of the June 2013 quarter shows;


  • Total personal insolvency activity decreased by 1.14%
  • All states except NSW and WA had a decrease in total personal insolvency activity
  • Bankruptcy decreased 3.57%
  • Personal insolvency agreements decreased by 23.61%
  • Debt agreements increased by 4.91%

An analysis of these statistics for the September 2013 quarter when compared to that of the September 2012 quarter shows;


  • Total personal insolvency activity decreased 8.7%
  • All states except WA had a decrease in total personal insolvency activity
  • Bankruptcies decreased 12.7%
  • Personal insolvency agreements decreased 32.93%
  • Debt agreements increased by 1.53%

Whilst the generally personal insolvency activity is still decreasing, it is doing so at a much slower rate when compared to the same period last year.

The above trends also reveal that the number of Personal Insolvency agreements are on the decline at a considerable rate whilst the Debt Agreement numbers are continuing to increase. A contributing factor is likely due to the twice yearly increase of the threshold amounts.

One can also conclude that the trend shows a shift from business debt to consumer debt (ie credit card and personal loans).

It will be of interest to see how the trend plays out for the December 2013 quarter.

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