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The number of personal insolvencies linked to individuals running a business dropped further in December, according to the latest AFSA statistics.
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Personal insolvencies ease slightly in December
14 February 2025
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6 minute read
The latest personal insolvency statistics indicated a total of 828 personal insolvencies for December last year, according to provisional monthly statistics by the Australian Financial Security Authority.
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This was a substantial drop from the 955 personal insolvencies in November and the 1,009 personal insolvencies in October last year.
The number of business-related personal insolvencies also eased from November, with only 249 people involved in a business entering a formal personal insolvency in December. This includes sole traders, people in partnerships or directors in companies.
However, business-related personal insolvencies remain slightly higher than the December period last year when there were 232 business-related insolvencies.
Bankruptcy remains the most common form of personal insolvency, followed by debt agreements.
Individuals entering personal insolvency most commonly worked in construction, health care, social assistance, and retail trade.
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The total number of personal insolvencies still increased slightly from the December period last year when insolvencies were at 805.
Recent company insolvency statistics from ASIC indicated that company insolvencies were still rising, with the second half of 2024 seeing a 47 per cent increase compared to the same period last year.
Insolvency rates increased across nearly all sectors of the economy in the final two quarters of 2024 with the ATO continuing its stricter stance towards tax collection.
The leading sectors included construction, accommodation and food services, and other services. Some 1,827 construction companies entered external administration between July and December 2024, marking a 29 per cent increase on 2023.
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