Business entering external administration reached 7,742 during the first nine months of the financial year and are on track to reach 10,000 by June 30 – a level not seen for more than 10 years.
ASIC released its latest business insolvency data yesterday, reporting that external administrations grew by 36 per cent in the nine months to March, compared with the previous corresponding period.
There were 878 restructurings (up 294 per cent) and 1.593 court liquidation appointments (up 218 per cent).
It said the last time there were 10,000 external administrations in a financial year was 2012/13.
The construction industry accounted for 27.7 per cent external administrations and accommodation and food services made up 15.2 per cent.
ASIC cautioned that when analysing the data it is important to note that the ratio of companies entering external administration compared with the number of registered companies is well below 2012/13 levels.
There were around two million registered companies in 2012/13 and 3.3 million in the current financial year.