Just over a month ago, Australian Securities and Investment Commission (ASIC) unveiled last financial year’s statistics on corporate insolvencies.
From June 2018 to the same time in 2019, the recorded amounts of corporate insolvencies were at 10,747. ASIC found that the June 2019 quarter recorded the most administrations of insolvencies (2,911) and that this number was a drastic increase of 20% from the March 2019, December 2018 and September 2018 quarters. Insolvencies classed as in the business and personal services, and construction industry, continue to dominate the insolvencies by industry profile with 36 per cent and 19 per cent of insolvencies being of the two industries respectively.
In each quarter, the below industries were ranked with few variations, as the top five industries to suffer insolvency:
- Business & Personal Services
- Accommodation & Food Services
- Retail Trade
- Transport, Postal & Warehousing
Further, 80% of these insolvencies were located in NSW, Victoria and Queensland, with the majority of these 10,747 incidents occurring in NSW. In NSW, 34% (3,651) of these insolvencies occurred, with Victoria responsible for 28% (3,026) and Queensland accountable for 20%. On the other end of the spectrum, Tasmania and Northern Territory faced only 160 insolvencies (91 and 69 respectively).
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