Personal insolvencies fall in most capital cities in March quarter 2019

The Australian Financial Security Authority (AFSA) released regional personal insolvency statistics for the March quarter 2019.

The exception was Greater Darwin, and WA continues to experience high levels of insolvency.

In the March quarter 2019, debtors who entered a new personal insolvency in Greater Sydney fell by 156 (-12.6%) to 1,082; Wyong (60) was the region with the most new debtors. The rest of New South Wales fell by 35 (-4.6%) to 728; Newcastle (46) was the region with the most new debtors.

In the March quarter 2019, debtors who entered a new personal insolvency in Greater Melbourne fell by 30 (-3.5%) to 830; Wyndham (65) was the region with the most new debtors. The rest of Victoria fell by 20 (-6.4%) to 294; Geelong (40) was the region with the most new debtors.

In the March quarter 2019, debtors who entered a new personal insolvency in Greater Brisbane fell by 92 (-9.3%) to 894; Springfield – Redbank (68) was the region with the most new debtors. The rest of Queensland fell by 41 (-3.8%) to 1,035; Townsville (110) was the region with the most new debtors.

In the March quarter 2019, debtors who entered a new personal insolvency in Greater Adelaide fell by 15 (-4.7%) to 301; Salisbury (48) was the region with the most new debtors. The rest of South Australia rose by 43 (51.8%) to 126; Murray and Mallee (39) was the region with the most new debtors.

In the March quarter 2019, debtors who entered a new personal insolvency in Greater Perth fell by seven (-1.0%) to 725; Wanneroo (87) was the region with the most new debtors. The rest of Western Australia rose by 10 (6.8%) to 157; Bunbury (33) was the region with the most new debtors.

In the March quarter 2019, debtors who entered a new personal insolvency in Greater Hobart fell by five (-8.8%) to 52; Hobart – North West (21) was the region with the most new debtors. The rest of Tasmania fell by 17 (-16.8%) to 84; Launceston (28) was the region with the most new debtors.

In the March quarter 2019, debtors who entered a new personal insolvency in Greater Darwin rose by four (7.5%) to 57; Palmerston (25) was the region with the most new debtors. The rest of Northern Territory fell by eight (-30.8%) to 18; Alice Springs (12) was the region with the most new debtors.

In the March quarter 2019, debtors who entered a new personal insolvency in Australian Capital Territory fell by four (-5.3%) to 71; Tuggeranong (21) was the region with the most new debtors

Personal insolvencies rise 5.6% in 2017–18

The Australian Financial Security Authority today released the personal insolvency activity statistics for 2017–18 and the June quarter 2018.

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

17-18 Total personal insolvency activity in Australia % change compared to the previous year

Personal insolvencies in 2017–18

There were 31,859 new personal insolvencies in Australia in 2017–18. This was an increase of 5.6% compared to 2016–17. Total personal insolvencies have risen for three consecutive years but remain below the record level of 36,539 set in 2009–10.

Debt agreements increased to an annual record of 14,834 in 2017–18, which was a 9.1% increase compared to 2016–17. They have now reached record levels for six consecutive years. There were record levels of debt agreement in all states and territories except Tasmania.

Bankruptcies increased by 3.0% to 16,811 in 2017–18. Despite this increase, they remained below the record level of 27,520 set in 2008–09. Bankruptcies reached a record high of 158 in Northern Territory in 2017–18.

Annual levels of personal insolvency agreements are small compared to the other types of personal insolvency. There were 214 personal insolvency agreements in 2017–18 after an annual fall of 12.3%.

Spotlight on the June quarter 2018

There were 8,177 total personal insolvencies in Australia in the June quarter 2018. This was a rise of 7.4% compared to the June quarter 2017. By type of personal insolvency:

  • bankruptcies increased by 13.1%
  • debt agreements increased by 1.5%
  • personal insolvency agreements decreased by 5.2%.

Total personal insolvencies rose in all states and territories except Victoria, where they fell by 1.0%. They reached record highs in Northern Territory (95 personal insolvencies) and Western Australia (1,046 personal insolvencies).

In the June quarter 2018, 17.6% of new debtors entered a business related personal insolvency. Where we could identify a specific cause:

  • economic conditions (363 debtors) was the most common business related cause
  • excessive use of credit (2,407 debtors) was the most common non-business related cause.

Insolvencies By Locations – Spot The Pain!

The Australian Financial Security Authority has released the quarterly statistics for insolvencies to March 2018, down to a location (SA3) level.

By state, NSW leads the way with 2,073 personal insolvencies and 322 business insolvencies. Queensland has 1,908 personal insolvencies and 410 business insolvencies and has the highest proportion of the population across the states in trouble.

Drilling down, we see the Greater Sydney and the Rest of Queensland lead they way, followed by Brisbane.

We can then look across the main states by location.  WA’s worst location is Wanneroo, followed by Swan and Rockingham (aligns with our mortgage stress analysis by the way).

In Queensland, Townsville and Ormeau – Oxenford lead the way.

In Victoria Wyndham and Casey – South are the highest counts.

And in NSW, Campbelltown, Wyong, Mount Druitt and Penrith are the leaders – again close correlation with our mortgage stress analysis.

The point to make is insovencies do vary considerably by geography, as does the mix of business and personal insolvencies.

Record Insolvencies In WA

The Australian Financial Security Authority today released the  personal insolvency activity statistics for the March quarter 2018.

In state and territory terms, personal insolvencies reached a record quarterly high in Western Australia (1,020) and the highest level since the September quarter 2014 in New South Wales (2,372).

Total personal insolvencies in the March quarter 2018 increased slightly by 0.1% compared to the March quarter 2017. Bankruptcies decreased by 1.8%, debt agreements increased by 3.9% and personal insolvency agreements decreased by 59.3%.

The total number of personal insolvencies in the March quarter 2018 (7,910) increased slightly by 0.1% compared to the March quarter 2017 (7,900).

Quarterly total personal insolvencies remain below the historical national peaks reached in 2008–09 and 2009–10 (more than 9,000 personal insolvencies).

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

Bankruptcies

The number of bankruptcies decreased by 1.8% in year-on-year terms, from 4,225 in the March quarter 2017 to 4,148 in the March quarter 2018. This follows a 1.3% year-on-year rise in the December quarter 2017. The year-on-year fall in bankruptcies occurred in:

Australian Capital Territory (-37.9%)
Victoria (-15.4%)
South Australia (-10.8%)
Queensland (-2.5%).

These falls were partly offset by rises in:

Northern Territory (53.8%)
Western Australia (16.0%)
Tasmania (11.1%)
New South Wales (1.2%).

Bankruptcies constituted 52.4% of total personal insolvencies, falling from 53.5% in the March quarter 2017.

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

Debt agreements

The number of debt agreements increased by 3.9% in year-on-year terms, from 3,584 in the March quarter 2017 to 3,725 in the March quarter 2018.

Debt agreements increased in year-on-year terms in most states and territories in the March quarter 2018:

New South Wales (20.2%)
Australian Capital Territory (15.8%)
Western Australia (7.0%)
South Australia (4.1%)
Northern Territory (2.2%).

Debt agreements fell in:

Victoria (-8.4%)
Tasmania (-5.3%)
Queensland (-5.1%).

Debt agreements reached a record quarterly high of 1,219 in New South Wales in the March quarter 2018. The previous quarterly record of 1,084 debt agreements occurred in the December quarter 2017.

Debt agreements constituted 47.1% of total personal insolvencies, rising from 45.4% in the March quarter 2017.
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

Quarterly personal insolvency agreement levels fluctuate proportionally more than those of bankruptcies and debt agreements as levels are relatively small.

The number of personal insolvency agreements decreased by 59.3% in year-on-year terms in the March quarter 2018, from 91 in the March quarter 2017 to 37 in the March quarter 2018. This is the lowest quarterly level of personal insolvency agreements on record. The previous record low of 38 occurred in the March quarter 2016.

This is the first quarter in which personal insolvency agreements have decreased in year-on-year terms since the March quarter 2016. It follows six consecutive quarterly increases. Personal insolvency agreements fell in all states and territories.

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

From the September quarter 2017, geographic coding of personal insolvency statistics follows a new method. There is also a minor change in the reporting date used for personal insolvency agreements from that quarter. These changes are breaks in series for our statistical publications. For further details see the Guide to personal insolvency statistics. Quarterly personal insolvency activity in Australia. They implemented a minor change to the reporting dates used for personal insolvency agreements in the September quarter 2017. This is the smallest type of personal insolvencies.

Regional Insolvencies Higher than Capital Cities

The latest data from The Australian Financial Security Authority (AFSA), regional personal insolvency statistics for the December quarter 2017, shows that on a relative basis more are in distress in the regions than in the major centres.

That said, there were 7,687 debtors who entered a new personal insolvency in the December quarter 2017 in Australia. Of these, 4,785 debtors or 62.2% were located in greater capital cities.

New South Wales – There were 1,320 debtors who entered a new personal insolvency in Greater Sydney in the December quarter 2017. The regions with the highest number of debtors were Campbelltown (NSW) (91), Wyong (80) and Gosford (74). There were 913 debtors who entered a new personal insolvency in rest of New South Wales in the December quarter 2017. The regions with the highest number of debtors were Newcastle (51), Lower Hunter (41) and Wagga Wagga (40).

Victoria – There were 1,064 debtors who entered new personal insolvencies in Greater Melbourne in the December quarter 2017. The regions with the highest number of debtors were Wyndham (72), Tullamarine – Broadmeadows (65) and Casey – South (63).  There were 367 debtors who entered a new personal insolvency in rest of Victoria in the December quarter 2017. The regions with the highest number of debtors were Geelong (54), Bendigo (33) and Ballarat (29).

Queensland – There were 1,021 debtors who entered a new personal insolvency in Greater Brisbane in the December quarter 2017. The regions with the highest number of debtors were Springfield – Redbank (77), Ipswich Inner (60) and North Lakes (54). There were 1,141 debtors who entered a new personal insolvency in rest of Queensland in the December quarter 2017. The regions with the highest number of debtors were Ormeau – Oxenford (102), Townsville (101), Rockhampton (64) and Toowoomba (64).

South Australia – There were 347 debtors who entered a new personal insolvency in Greater Adelaide in the December quarter 2017. The regions with the highest number of debtors were Salisbury (54), Onkaparinga (41) and Playford (40). There were 106 debtors who entered a new personal insolvency in rest of South Australia in the December quarter 2017. The regions with the highest number of debtors were Eyre Peninsula and South West (20), Murray and Mallee (18) and Barossa (16).

Western Australia – There were 776 debtors who entered a new personal insolvency in Greater Perth in the December quarter 2017. The regions with the highest number of debtors were Wanneroo (114), Rockingham (81) and Swan (81). There were 199 debtors who entered a new personal insolvency in rest of Western Australia in the December quarter 2017. The regions with the highest number of debtors were Bunbury (38), Mid West (27) and Goldfields (25).

Tasmania – There were 89 debtors who entered a new personal insolvency in Greater Hobart in the December quarter 2017. The regions with the highest number of debtors were Hobart – North West (30), Hobart Inner (16) and Brighton (13). There were 110 debtors who entered a new personal insolvency in rest of Tasmania in the December quarter 2017. The regions with the highest number of debtors were Launceston (32), Devonport (25) and Burnie – Ulverstone (20).

Northern Territory – There were 55 debtors who entered a new personal insolvency in Greater Darwin in the December quarter 2017. The regions with the highest number of debtors were Darwin Suburbs (19), Palmerston (14) and Litchfield (12). There were 26 debtors who entered a new personal insolvency in rest of Northern Territory in the December quarter 2017. The regions with the highest number of debtors were Alice Springs (12) and Katherine (8).

Australian Capital Territory – In the December quarter 2017, there were 113 debtors who entered a new personal insolvency in the Australian Capital Territory. The regions with the highest number of debtors were Belconnen (32), Gungahlin (32) and Tuggeranong (30).

Personal Insolvencies Sharply Higher

The latest data from The Australian Financial Security Authority, for the December 2017 quarter shows a significant rise in personal insolvency – a bellwether for the financial stress within the Australian community.

The total number of personal insolvencies in the December quarter 2017 (7,578) increased by 7.4% compared to the December quarter 2016 (7,055). This year-on-year rise follows a rise of 8.0% in the September quarter 2017.

Total personal insolvencies increased in all states and territories in the December quarter 2017, in year-on-year terms.

Quarterly total personal insolvencies remain below the historical peaks reached in 2008–09 and 2009–10 (more than 9,000 personal insolvencies).

The number of bankruptcies increased by 1.3% in year-on-year terms, from 3,976 in the December quarter 2016 to 4,029 in the December quarter 2017. This follows a 0.1% year-on-year rise in the September quarter 2017. Bankruptcies constituted 53.2% of total personal insolvencies, falling from 56.4% in the December quarter 2016.

The number of bankruptcies rose in year-on-year terms in the December quarter 2017 in all states and territories except Victoria, Queensland and South Australia.

In December quarter 2017, the number of debt agreements fell to 3,500 from the record high of 3,885 in the September quarter 2017.

In year-on-year terms, debt agreements rose by 15.3% from the December quarter 2016. This is the tenth consecutive quarter in which debt agreements have increased in year-on-year terms.

Debt agreements constituted 46.2% of total personal insolvencies, rising from 43.0% in the December quarter 2016.

Debt agreements increased in year-on-year terms in all states and territories in the December quarter 2017. Debt agreements in New South Wales reached a record quarterly high of 1,084 debt agreements in the December quarter 2017. There were 51 debt agreements in the Northern Territory (NT) in the December quarter 2017. Debt agreements in the NT also reached this record in the September quarter 2016.

Quarterly personal insolvency agreement levels fluctuate proportionally more than those of bankruptcies and debt agreements as levels are relatively small.

The number of personal insolvency agreements increased by 14.0% in the December quarter 2017 (49) compared to the December quarter 2016 (43).

This is the sixth consecutive quarter in which personal insolvency agreements have increased in year-on-year terms.

 

Latest Insolvency Data Highlights Regional Risks

The latest data from the Australian Financial Security Authority  gives us data for the September 2017 quarter on personal insolvencies across the country. They changed the format of their reports so trending data is not easy. But WA and QLD are where the relative higher proportion of defaults are to be found, especially business related failures.

Lets look at the absolute count of new debtors by areas. The blue line shows the number of new debtors. The most new ones were in Greater Sydney, Regional Queensland, Greater Brisbane and Greater Melbourne. These are areas of relative high populations, so on one level no surprise.

But, a better way to compare the relative impact is to use a relative measure – the number of new debtors per 100,000 population, using the ABS data.

On this basis, the Regional Queensland, Greater Brisbane and Rest of Tasmania have the highest concentration. Queensland is clearly a problem area. Greater Sydney and Melbourne are at the lowest end of the spread.

Finally, we sort the data by proportion of business failures. That shows Greater Perth and Regional WA, then Regional Queensland have the higher business related failure rates.

The largest numbers of debtors entering a business-related personal insolvency in Greater Perth in the September quarter 2017 were in:

  • Wanneroo (20 debtors)
  • Rockingham (19 debtors)
  • Joondalup (14 debtors).

The largest numbers of debtors entering a new business-related personal insolvency in rest of Western Australia in September quarter 2017 were in:

  • Goldfields (8 debtors)
  • Bunbury (7 debtors)
  • Wheat Belt – North (5 debtors).

The largest numbers of debtors entering a new business-related personal insolvency in rest of Queensland in the September quarter 2017 were in:

  • Ormeau – Oxenford (23 debtors)
  • Townsville (17 debtors)
  • Mackay (16 debtors).

We find these data series to be helpful in assessing the risks of default within our Core Market Models.

Debt agreements and how to avoid unnecessary debt traps

From The Conversation.

Debt agreements are the fastest growing form of personal insolvency in Australia. They were designed to offer debtors a low-cost way to make arrangements with their creditors, while avoiding bankruptcy and some of its more serious consequences.

When introduced, law reformers intended that debt agreements should be administered by volunteers rather than by commercial administrators who charge fees. However, in practice, debtors often pay substantial fees to debt agreement administrators.

In fact, many debtors pay more than 100% of their original debt, because of the high cost of administration fees. But there are cheaper options available for managing debt.

Debt agreements

Debt agreements are binding contracts made between debtors and their creditors in accordance with personal insolvency law. They are aimed at providing debtors in financial stress with the option of compromising with creditors. Not all debtors can enter into a debt agreement – there are income and debt limits.

In many cases, debtors pay their creditors an agreed reduced amount by instalments over a period of time. A debt agreement administrator assists in the negotiation process and distributes the payments to creditors.

Debt agreements have fewer adverse consequences than bankruptcy. One key advantage is that debtors may be allowed to keep their home.

Nonetheless, the adverse consequences of debt agreements include having a record on the National Personal Insolvency Index, and difficulties obtaining credit. Debtors’ ability to maintain a licence in various professions may be affected and the debt agreement must be disclosed in certain situations.

A growing problem in Australia

In 2016 there were 12,150 new debt agreements, comprising 41.5% of all personal insolvencies in Australia. While the number of debt agreements has increased steadily each year, bankruptcies have decreased since 2010.

Our research examines three sources of data to gauge the impact of debt agreements. These sources include statistics from the Australian Financial Security Authority (AFSA), an online survey of 400 debtors, and interviews with industry stakeholders.

Most debtors pay more under debt agreements than the amount they originally owed. This is due to the fees charged by AFSA and, in particular, for-profit debt agreement administrators.

In 2016, close to 23% of debtors’ payments went towards debt agreement administrators’ fees. The total amount of fees paid by debtors is higher when Australian Financial Security Agency fees and set-up fees paid to debt agreement administrators are included.

Many debt agreements are unsuitable

Debt agreements are useful for some people, such as those who have a home to protect from seizure in bankruptcy. However, consumer advocates find many instances of debt agreements unsuited to the needs of debtors. High administration fees are detrimental particularly for low income debtors.

Some debtors enter into debt agreements which they clearly cannot afford, aggravating their financial stress. If they are unable to make the payments required under a debt agreement and it is terminated, the fees cannot be recovered but the debts to creditors remain, leaving debtors in a worse position.

Debtors who rely primarily on Centrelink benefits are among the clearest examples of people unsuited to debt agreements. Centrelink benefits are meant to provide a basic standard of living, and diverting a portion of income towards debt agreements is likely to cause significant hardship.

People whose incomes comprise a disability or aged pension may in many cases be better off declaring bankruptcy, or seeking other forms of debt relief.

Better options available

There are several fee-free options for managing debt which do not involve the adverse consequences of debt agreements.

Financial hardship schemes commonly allow payment by instalments, or short term extensions of time, for debts owed to utilities or credit providers. Free independent dispute resolution offered by the Financial Ombudsman Service and the Credit and Investments Ombudsman is available to people who have disputes with financial service providers.

People often enter into debt agreements without seeking independent advice or accessing other options for managing debt. In 2016, 92% of debt agreement debtors relied on debt administrators as their primary source of information. Marketing often emphasises the advantages of debt agreements over bankruptcy.

Debtors often lack adequate knowledge of cheaper, better options for managing debt and of the adverse consequences of debt agreements. When the debt agreement system was established, it was not expected that private, profit-making debt administrators would assume a prominent role.

Law reformers noted in the 1996 Bankruptcy Legislation Amendment Bill that ‘if fees were charged, debt agreements would in many cases not be viable either for the debtor, or for his or her creditors’. They further noted that this would defeat the purpose for which debt agreements were introduced.

Recommendations

Reforms to the debt agreement system are currently being considered, but in order to be effective, these reforms should provide better safeguards for debtors. These should include stricter eligibility requirements for debtors entering into debt agreements such as a minimum income or ownership of assets which are protected from seizure in bankruptcy.

We need a more rigorous, legally binding assessment of debtors’ suitability on the part of debt agreement administrators; the provision of clearer information to debtors; and limits on administrators’ fees. Debtors should have access to free dispute resolution services when problems with debt agreement administrators arise.

Such reforms would reduce the risk of debtors being left worse off, financially, as a result of debt agreements that are unsuited to their circumstances.

Authors: Vivien Chen, Lecturer, Monash Business School, Monash University; Ian Ramsay, Professor, Melbourne Law School, University of Melbourne; Lucinda O’Brien, Research Fellow, University of Melbourne

Excessive Credit Main Cause Of Personal Insolvencies

New data from the Australian Financial Security Authority shows that in 2016–17, the most common non-business related causes of debtors entering personal insolvencies were:

  • excessive use of credit (8,870 debtors)
  • unemployment or loss of income (8,035 debtors)
  • domestic discord or relationship breakdown (3,222 debtors).

However, employment related issues figured first in WA and SA. Here is an extract from their report:

Non-business related causes of personal insolvencies, 2016–17

Non-business related causes of personal insolvencies 2016–17

While these were the three most common causes of debtors entering non-business related personal insolvencies in every financial year from 2007–08 to 2015–16, excessive use of credit overtook unemployment or loss of income as the single most common cause in 2016–17.

Non-business related debt agreements have increased since 2007–08

The shift towards excessive use of credit is associated with the growing number and proportion of debt agreement personal insolvencies year by year (both at a record level in the June quarter 2017; see personal insolvency statistics and business and non-business statistics for further information). In the period from 2007–08 to 2016–17, debt agreements have increased from 22.9% of non-business related personal insolvencies to 50.1%. In non-business related debt agreements, excessive use of credit has been the most common cause in every year since 2011–12.

Bankruptcies comprised 49.2% of non-business related personal insolvencies in 2016–17, and personal insolvency agreements comprised 0.7%.

The most common non-business related causes of personal insolvencies are similar for all states and territories

In 2016–17, excessive use of credit was the most common non-business case of new personal insolvencies in Australia. This was also the most common cause in 2016–17 in all states and territories except Western Australia, South Australia and Tasmania. Unemployment or loss of income was the most common cause in Western Australia and South Australia. In Tasmania, an equal number of debtors entered into personal insolvencies due to excessive use of credit and unemployment or loss of income. In all cases (as for Australia), the third most common cause was domestic discord or relationship breakdown.

State or territory Most common non-business cause Number of new debtors % total new debtors in a non-business related personal insolvency
New South Wales Excessive use of credit 2,660 36.4%
Australian Capital Territory Excessive use of credit 126 37.6%
Victoria Excessive use of credit 1,696 35.5%
Queensland Excessive use of credit 2,627 35.4%
South Australia Unemployment or loss of income 530 33.8%
Northern Territory Excessive use of credit 104 41.3%
Western Australia Unemployment or loss of income 994 35.8%
Tasmania Excessive use of credit / Unemployment or loss of income 217 34.0%
Australia** Excessive use of credit 8,870 35.2%

*Includes other and unknown state or territory

Most debtors entering non-business related personal insolvencies are male

In 2016–17, 13.3% more men than women entered new non-business related personal insolvencies. This disparity extended across most non-business related causes of personal insolvency. The cause with the highest sex ratio (that is, the ratio of men to women in the debtor population) was gambling or speculation (2.3). More women than men cited ill health and domestic discord or relationship breakdown as causes of new non-business related personal insolvencies (sex ratios of 0.9 and 0.7 respectively).

Non-business related causes by sex, 2016–17*

Main non-business related cause of personal insolvency Number of male debtors Number of female debtors
Excessive use of credit 4,566 4,299
Unemployment or loss of income 4,311 3,707
Domestic discord or relationship breakdown 1,376 1,843
Ill health 874 950
Gambling or speculation 363 161
Adverse legal action 238 148
Liabilities due to guarantees 132 100
Other non-business reason or unknown 1,519 602
Total 13,379 11,810

*Excludes records where debtors did not disclose their sex.

The median age of debtors entering non-business related personal insolvencies varies by cause

In 2016–17, the highest median age of debtors entering new non-business related personal insolvencies was among those who cited the causes adverse legal action and liabilities due to guarantees (both 46 years). Those who cited excessive use of credit had the lowest median age of 36 years. The median age of all new debtors entering non-business related personal insolvencies was 38.

Median age of debtors entering non-business related personal insolvencies in 2016–17 by cause, Australia

Main non-business related reason for entering a personal insolvency Median age of new debtors*, 2016–17 (years)
Adverse legal action 46
Liabilities due to guarantees 46
Ill health 43
Gambling or speculation 40
Domestic discord or relationship breakdown 38
Unemployment or loss of income 37
Excessive use of credit 36
Total 38

*Where an age was recorded

 

Some Falls In New Personal Insolvencies For June 17 Quarter

The Australian Financial Security Authority (AFSA) released regional personal insolvency statistics for the June quarter 2017.

There were 7,729 debtors who entered a new personal insolvency in the June quarter 2017 in Australia. This is a fall of 311 debtors (3.9%) compared to the March quarter 2017. Victoria and Queensland had the strongest falls, falling by 131 and 111 debtors respectively. Both of these states had falls in the number of debtors in both the capital city and the rest of the state.

Regional Queensland has the highest relative proportion of debtors, and the were also more in regional NSW compared with those in the City.

Personal insolvency in Australia: capital cities compared to rest of state

New South Wales

There were 1,297 debtors who entered a new personal insolvency in Greater Sydney in the June quarter 2017. The regions with the highest number of debtors were Campbelltown (83), Wyong (74) and Penrith (71).

There were 892 debtors who entered a new personal insolvency in rest of New South Wales in the June quarter 2017. The regions with the highest number of debtors were Newcastle (43), Tamworth – Gunnedah (42) and Shoalhaven (42).

Victoria

There were 1,045 debtors who entered new personal insolvencies in Greater Melbourne in the June quarter 2017. The regions with the highest number of debtors were Casey – South (76), Wyndham (71) and Whittlesea – Wallan (70).

There were 410 debtors who entered a new personal insolvency in rest of Victoria in the June quarter 2017. The regions with the highest number of debtors were Geelong (59), Ballarat (45) and Bendigo (29).

Queensland

There were 1,023 debtors who entered a new personal insolvency in Greater Brisbane in the June quarter 2017. The regions with the highest number of debtors were Springfield – Redbank (71), Browns Plains (70) and Ipswich Inner (55).

There were 1,272 debtors who entered a new personal insolvency in rest of Queensland in the June quarter 2017. The regions with the highest number of debtors were Townsville (116), Ormeau – Oxenford (95) and Mackay (91).

South Australia

There were 378 debtors who entered a new personal insolvency in Greater Adelaide in the June quarter 2017. The regions with the highest number of debtors were Onkaparinga (67), Playford (53) and Salisbury (41).

There were 115 debtors who entered a new personal insolvency in rest of South Australia in the June quarter 2017. The regions with the highest number of debtors were Eyre Peninsula and South West (29), Limestone Coast (20) and Murray and Mallee (12).

Western Australia

There were 755 debtors who entered a new personal insolvency in Greater Perth in the June quarter 2017. The regions with the highest number of debtors were Wanneroo (86), Rockingham (77) and Swan (74).

There were 161 debtors who entered a new personal insolvency in rest of Western Australia in the June quarter 2017. The regions with the highest number of debtors were Bunbury (43), Wheat Belt – North (21), Augusta – Margaret River – Busselton (18), Mid West (18) and Pilbara (18).

Tasmania

There were 84 debtors who entered a new personal insolvency in Greater Hobart in the June quarter 2017. The regions with the highest number of debtors were Hobart – North West (38), Hobart – North East (16) and Hobart – South and West (12).

There were 98 debtors who entered a new personal insolvency in rest of Tasmania in the June quarter 2017. The regions with the highest number of debtors were Launceston (33), Devonport (16) and Burnie – Ulverstone (14).

Northern Territory

There were 52 debtors who entered a new personal insolvency in Greater Darwin in the June quarter 2017. The regions with the highest number of debtors were Palmerston (19), Darwin Suburbs (16) and Darwin City (9).

There were 30 debtors who entered a new personal insolvency in rest of Northern Territory in the June quarter 2017. The regions with the highest number of debtors were Alice Springs (14) and Katherine (11).

Australian Capital Territory

In the June quarter 2017, 89 debtors entered new personal insolvencies in the Australian Capital Territory. The regions with the highest number of debtors were Tuggeranong (31), Gungahlin (22) and Belconnen (20).