iscoverNew data from AFSA has reflected the hardship businesses continue to face, with personal insolvency numbers having jumped in the June quarter.
Personal insolvencies see uptick for June 2025 quarter
28 August 2025
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8 minute read
The June quarter of this year saw 3,179 business-related personal insolvencies, highlighting a 7.9 per cent increase in comparison to the same period last year.
According to the statistics revealed by the Australian Financial Security Authority (AFSA), of the total 3,179 personal insolvencies, 1,780 were bankruptcies, 1,343 were debt agreements, 51 were personal insolvency agreements, and five were deceased estates.
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Tim Beresford, AFSA chief executive and bankruptcy inspector-general, said the results were a clear indicator that Australians continued to struggle and should urgently seek help if needed.
“Following a modest increase in the June quarter of 2025, we continue to encourage all Australians experiencing financial difficulty to seek help early from trusted sources to assist in finding a solution that works for their circumstances,” he said.
“Harmful insolvency advice and debt agreements is a key systemic harm AFSA is targeting in 2025-26, as highlighted in our regulatory action statement. One of our key priorities is ensuring debtors are aware of their rights, including access to free advice.”
The data also highlighted that on a national scale, personal insolvencies increased in NSW, Victoria, Queensland, Western Australia and Tasmania compared to the June quarter 2024.
However, numbers dropped in South Australia, the Northern Territory and the ACT.
On the note of harmful insolvency advice, Beresford warned that accessing harmful advice had caused individuals to be charged fees into the thousands, causing significant delays to the bankruptcy process.
Despite this uptick within the June quarter, Beresford noted in an address at the 2025 Australian Finance Industry Association (AFIA) webinar that personal insolvencies had fallen to their lowest levels since the late 1980s.
This was attributed to improved creditor engagement following the 2017 Hayne Royal Commission, more proactive debtor behaviour during and after the pandemic and sustained low employment.
According to Beresford, there were four key shifts that were currently reshaping the credit ecosystem such as the unsecured credit market having contracted, insolvency cases often involve renters with a smaller asset base, the weakened link between corporate and personal insolvencies and business-related personal insolvencies representing the bulk of the system’s financial liabilities.
From these insights, Beresford said AFSA had a clear understanding of the changing dynamics in the Australian ecosystem.
“They enable us to continuously adapt our practices to meet the evolving needs of the Australian economy and community. By sharing our insights, we help foster collaboration and, ultimately, stronger financial regulation.”
“Australia’s personal insolvency and credit systems are constantly evolving. Our job is to maintain public trust in these systems as they evolve, so people can use them with confidence. I'd argue it’s a job for all of us. We all benefit from a strong credit system that ensures access to finance.”
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