Personal insolvencies increase sharply in June quarter
A sudden surge in personal insolvencies over the June 2016 quarter has seen the biggest rise since the March quarter of 2009.
Figures released by the Australian Financial Security Authority (AFSA) revealed a 13.7 per cent increase in personal insolvencies across the June quarter.
In regards to specific types of personal insolvency, Australian cases of bankruptcy increased by 7.0 per cent; debt agreements increased by 24.3 per cent; while personal insolvency agreements remained stable throughout the period.
According to the AFSA, personal insolvencies rose in all states and territories during the June quarter of 2016 compared with a year earlier.
Debt agreements in the June quarter of 2016 are the highest on record at 3,329, surpassing the previous record of 3,081 in September 2015. Debt agreements have also reached record highs in NSW, Queensland and Western Australia.
The findings put forward by the AFSA also indicated a rise in debtors with a business-related personal insolvency (17.5 per cent compared with 16.1 in the previous quarter).
In the June quarter of 2016, 'economic conditions' was the most common business-related cause of insolvency (465 debtors), while unemployment or loss of income (2,138 debtors) and excessive use of credit (2,132 debtors) were the most common non-business related causes.