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Australian bankruptcies hit record 23 year low

Leading information provider and Australian Financial Security Authority (AFSA) broker GlobalX has advised there is still a critical need for individuals and businesses alike to be aware of who they are doing business with, despite a fall in bankruptcies across the nation.

The latest figures from AFSA have revealed bankruptcies in Australia have fallen to their lowest level since March 1995, according to personal insolvency statistics for the October – December quarter.

GlobalX CEO Peter Maloney said the latest statistics showed there were 3,788 bankruptcies in the final quarter of 2018, representing a six per cent fall when compared to the same period in 2017.

“The decline represents the lowest levels of bankruptcies since the March quarter of 1995, which is fantastic news for the Australian business community,” Mr Maloney said.

“Over the 23-year period, all states and territories saw consistent reductions, with the exception of Western Australia and the Northern Territory.

“Personal insolvencies were also at their lowest level since the December 2005 quarter, falling 10.9 per cent when compared to the December 2017 quarter.”

Despite the latest promising figures, Mr Maloney recommends individuals and businesses don’t forget three simple due-diligence measures before signing any business deal:

  1. Conduct an online AFSA Bankruptcy Search that will provide a comprehensive extract on an individual’s insolvency history.
  2. Conduct a credit check on the individual to ensure they have no unresolved debts that could lead to bankruptcy.
  3. Search the Australian Securities & Investments Commission (ASIC) Register to verify the basic details of an individual’s role in a company. An ASIC search will also shed light on whether the individual has ever been disqualified from managing corporations.

Top States of Personal Bankruptcy for the December Quarter 2018

  1. QLD
  2. NSW
  3. VIC
  4. WA
  5. SA
  6. TAS
  7. ACT/NT*

Related AFSA Media Release: https://www.afsa.gov.au/about-us/newsroom/bankruptcies-their-lowest-number-23-years

To find out more about GlobalX’s business due-diligence solutions including AFSA Bankruptcy searches, click here.