Incidence of personal insolvencies remains static
Despite a spike in bankruptcies in both NSW and post-mining boom WA, nationally the number of personal insolvencies over the March quarter showed little movement.The latest statistics on personal insolvencies for the March quarter 2018 were released by the Australian Financial Security Authority yesterday.The total volume increased by just 0.1 per cent nationally, rising to 7,910 from 7,900 over the same quarter last year. Viewed state by state, total personal insolvencies reached a record quarterly high in post-mining boom Western Australia (1,020), and the highest level since the September quarter 2014 for New South Wales (2,372).Broken down according to type of personal insolvency, the mix in the March 2018 quarter changed slightly from previous quarters, with bankruptcies decreasing by 1.8 per cent and debt agreements up by 3.9 per cent. There were 3,725 debt agreements in the March quarter 2018 (47.1 per cent of insolvencies). The number of such agreements reached a record quarterly high of 1,219 in New South Wales. The reason for the change was not clear: it may just be a sign of a more patient set of creditors in a low income environment. In previous years, the Australian Tax Office has been active in initiating bankruptcies - anecdotally it has since been told to ease off.The tiny category of personal insolvency agreements (which comprise under .5 per cent of total cases) decreased even more. Coming off a very low base of 91 agreements in the same quarter of 2017, the number of agreements dropped to 37, a 59 per cent drop quarter on quarter. This is the lowest quarterly level of personal insolvency agreements on record.