AFSA reports 6.2% rise in personal insolvencies

National data released by the Australian Financial Security Authority (AFSA) has found personal insolvencies increased in every state and territory compared to the same time last year.

In the 2026 March quarter, 1,749 cases were bankruptcies, 1,356 were debt agreements, 50 were personal insolvency agreements, and six were insolvent decreased estates.

Of the 184 more personal insolvencies in the three-month period to March 2026, 29.2 per cent were business related.

AFSA chief executive Tim Beresford noted that “insolvency levels remain significantly below historical peaks, but some households show heightened sensitivity to economic change”.

Individuals aged between 30-34 represented the biggest proportions of individuals entering into personal insolvency which, Beresford noted, is a “relatively early stage of asset accumulation”.

“Many people entering personal insolvency are employed, but have limited financial buffers, which affects their capacity to absorb changes in income or expenses,” he said.

“If you or someone you know is experiencing financial difficulty, it’s important to know that seeking help early from trusted sources can make a real difference, helping people better understand their options and find a solution that works for their circumstances.”

As reported by Accounting Times’ sister brand, Accountants Daily, last year, personal insolvencies minorly decreased in the 2025 March quarter. In last year’s period, there were 2,977 new personal insolvency cases, a 0.1 per cent decrease from the same time in 2024.

On the 2025 figures, Beresford 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.”