Insolvency numbers up in March

Personal insolvency numbers rose in the March quarter but over the longer term the financial position of Australian households continues to improve.

The Australian Financial Security Authority has released the latest bankruptcy, debt agreement and personal insolvency figures, showing a 1.5 increase compared with the December quarter.

The number of bankruptcies rose from 4179 in the December quarter to 4379 in the March quarter, the number of debt agreements fell from 2655 to 2568 and personal insolvency agreements fell from 54 to 42.

The longer-term trend is down, with personal insolvencies in the March quarter down 8.7 per cent compared with the March quarter last year.

Conditions improved in New South Wales, where personal insolvency numbers dropped 12.4 per cent over the 12 months to March, Queensland (down 9.9 per cent), Western Australia (down 7.3 per cent), Victoria (down 7.1 per cent), Tasmania (5.5 per cent) and South Australia (down 0.5 per cent).

Personal insolvency numbers rose 19 per cent in the Australian Capital Territory over the 12 months to March and 45.7 per cent in the Northern Territory.