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Personal insolvency numbers have reflected a slight drop for the 2025 March quarter in comparison to the same period last year.
Personal insolvencies see slight dip in Q1: AFSA
06 June 2025
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7 minute read
Recent data from the Australian Financial Security Authority (AFSA) revealed personal insolvencies across Australia have remained stable, decreasing slightly in the 2025 March quarter.
In the three-month period to March 2025, there were 2,977 new personal insolvencies, down from 2,981 in March 2024, showing a 0.1 per cent decrease.
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According to AFSA’s data, personal insolvencies dropped in Queensland, Western Australia, South Australia, the Northern Territory, and the ACT compared to the same period last year.
However, volumes of personal insolvencies increased in NSW, Victoria, and Tasmania.
Tim Beresford, AFSA CEO, said of the March quarter 2025 personal insolvencies, 847 of them were business-related, up from 758 in the March quarter last year.
“While there are changing economic and geopolitical conditions, Australia’s economy retains its core, resilient fundamentals which are reflected in the stability of the year-on-year personal insolvency numbers,” he said.
“Changing local and global economic conditions may lead to certain industries and individuals being more financially vulnerable. AFSA remains committed to providing support and resources to help Australians navigate financial difficulties – the AFSA website is a good place to start.”
From the data, it was also revealed that of the 2,977 insolvencies, 1,696 were bankruptcies, 1,239 were debt agreements, 38 were personal insolvency agreements, and four were insolvent deceased estates.
AFSA also recently published the new personal insolvency numbers for April 2025, which showed a decrease in the provisional monthly statistics.
In April, there were 1,073 new personal insolvencies, dropping from 1,122 in March 2025.
Of these personal insolvencies, 586 were bankruptcies, 465 were debt agreements, 17 were personal insolvency agreements, and five were insolvent deceased estates, with 300 of these being business-related.
In terms of the national spread of insolvency numbers, NSW led the way with the most personal insolvencies at 337, followed by Queensland at 259 and Victoria at 236, while the state with the least recorded was the NT at four.
“During the same period, 300 people who entered a formal personal insolvency were also involved in a business, dropping from 350 in March 2025. This covers sole traders, people in partnerships or directors in companies,” Beresford said.
“People experiencing financial stress are encouraged to seek support early. For anyone facing and considering formal insolvency options, reach out to a registered trustee or registered debt agreement administrator.”
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