According to the latest data from the Australian Financial Security Authority, pressure is mounting in WA, with personal insolvencies in the March quarter 2016 compared to the March quarter 2015 rising 26.0%, bankruptcies increasing 19.6% and debt agreements in WA are now the highest on record. However Queensland has the highest number of insolvencies across the states with 2,197 recorded events in the quarter. This is a bellwether for mortgage defaults and house prices.
Across Australia, the number of personal insolvencies increased 2.0% in the March quarter 2016 (7,129) compared to the March quarter 2015 (6,989). It also increased 1.9% compared to the December quarter 2015 (6,994). The rise in personal insolvencies in the March quarter 2016 is the fourth consecutive rise when compared to the same quarter in the previous year.
Cases of personal insolvency are represented by bankruptcies, debt agreements and personal insolvency agreements.
Queensland had more than 30% of the events, a little ahead of NSW at 28%, VIC at 20% and WA 10%.
However, WA had the strongest rises year on year, followed by debt agreements in QLD with a rise of 25%. The 60% rise in NT is statistically small, though significant to those involved.
WA also recorded the highest proportion of insolvencies which were business related at 19%, whilst QLD was at 18.5%.
Note that these figures refer to personal administrations under the Bankruptcy Act only (and not corporate insolvency). A business related bankruptcy is defined as being one in which an individual’s bankruptcy is directly related to his or her proprietary interest in a business.
