Insolvency Statistics update – Record Lows August + September
New insolvency appointments continue to go even lower, even though Australia is in recession. Numbers have been down on average 45% on the previous year since the start of April 2020. Recent results have dropped even further.
August 2020 at 275 new insolvency appointments is the lowest monthly number since January 2004, and the lowest August ever on record. It’s the equal 4th lowest month ever on record, and represents a huge 65% decrease from August 2019 (778).
September 2020 is a little higher at 298, but it is also the lowest September on record, and a 56% decrease from September 2019 (685).
Preliminary numbers for October indicate another record low 257.
At this rate the yearly number is likely to come in under 5,000 for the year, when it was 10,164 just back in 2015.
We’ve been saying for a while now that appointments are low because of the measures taken by the Government to counter the effect of COVID on the economy – JobKeeper, the Insolvent Trading moratorium, and the restrictions on creditors applying to wind debtors up. Now that the government has announced a new streamlined insolvency regime for small business, struggling companies have yet another reason to delay action.