Personal insolvency numbers at a 10-year low

Personal insolvency numbers fell in Australia during the year to June. The Australian Financial Security Authority has released bankruptcy and debt agreement figures for 2014/15, showing a 4.2 per cent reduction compared with the previous year.

After hitting a peak between 2008 and 2010, personal insolvency numbers are now back were they were a decade ago.

There were 28,288 personal insolvencies in the year to June, down from 29,514 in 2013/14.

Bankruptcy numbers were down 7.7 per cent to 17,163, debt agreement numbers increased 1.9 per cent to 10,911 and personal insolvency agreement numbers increased 2.9 per cent to 214.

The biggest fall was in New South Wales, where personal insolvencies were down nine per cent. Insolvencies were down 6.4 per cent in Tasmania, 3.7 per cent in Queensland and 3.6 per cent in Victoria.

These falls were offset by increases in the Northern Territory, where insolvency numbers were up 26.1 per cent, Western Australia (up 6.3 per cent), the Australian Capital Territory (up four per cent) and South Australia (up 1.5 per cent).

AFSA said personal insolvency numbers were up in the June quarter, compared with the June quarter last year. The 9.3 per cent increase was the first quarterly increase since the March quarter in 2013.