Are Australians managing their personal debt better? Bankruptcies are at their lowest level in 23 years!
The Australian Financial Security Authority (AFSA) has now released their December 2018 quarter personal insolvency statistics. The statistics show: –
- Nationally, the number of individuals declaring bankruptcy was at its lowest level since the March quarter of 1995;
- Bankruptcies in New South Wales have been in a steady decline since the June quarter 2018;
- The number of personal insolvencies entered into during the December 2018 quarter in New South Wales is reported as follows:
- 1,070 Bankruptcies, a 4.7% reduction from the December 2017 quarter figures;
- 893 Debt Agreements, a 17.6% reduction from December 2017; and
- 11 Personal Insolvency Agreements, an increase of 57.1% compared to December 2017 quarter figures.
- 18% of personal insolvencies are business related.
Further details in relation to the December 2018 quarter statistics can be viewed on the AFSA website at www.afsa.gov.au
Does this suggest that the national economy is improving?
Taking a look on a more regional level, the 2018 September quarter found that the Newcastle region had the highest number of new debtors. However, when looking back across the past 2 year period, the amount of bankruptcies in the Newcastle and Hunter area have remained consistent and are not largely affected by the reported changes on a state or national level. However, with tighter bank lending, a softening housing market and uncertainty with the upcoming election this is indicative of a perfect storm for an economic downturn. As such, will these national low levels of bankruptcy, just be the calm before the storm?
If you have a client who you feel may need independent guidance and expert advice regarding bankruptcy and alternative options, our dedicated and experienced Personal Insolvency Team will be able to provide professional advice tailored to their individual circumstances.