ASIC’s annual insolvency data shows more than 11,000 companies entered external administration for the first time in 2023-24. While this is slightly higher than prior peaks seen in 2011–12 and 2012–13, it is proportionately smaller as there are now nearly 3.4 million companies in Australia compared to around two million in 2012.
The current ratio of companies entering external administration compared to the number registered (0.33%) is still below 2012-2013 (0.53%) levels.
Overall, the number of external administrations grew by 39% in 2023–24 compared to 2022–23. The top three industries – Construction (27%), Accommodation and Food Services (15%) and Other Services (9%) represented over half of total external administrations for 2023–24.
Restructuring appointments grew by over 200% in 2023–24 compared to 2022–23 and now represent 12.9% of all external administrations.
Small business restructuring allows eligible companies – those whose liabilities do not exceed $1 million plus other criteria – to retain control of its business while it develops a plan to restructure its affairs. This is done with the assistance of a restructuring practitioner with a view to entering into a restructuring plan with creditors.
Of the 573 companies that entered restructuring after 1 January 2021 and had completed their restructuring plan by 30 June 2024, 89.4% remain registered, 5.4% have gone into liquidation (one company had entered into a Deed of Company Arrangement) and 5.2% were deregistered as at 30 June 2024.
Annual insolvency statistics: 2023-24
Annual insolvency statistics: 2023-24 – text version
Number of insolvencies by industry
- Construction (2,975) – 27 %
- Accommodation and food (1,667) – 15%
- Other services (1,039) – 9%
Number of insolvencies by state
- Nationwide – 11,049
- NSW – 4,634
- VIC – 2,862
- QLD – 2,036
- WA – 733
- SA – 454
- ACT – 193
- TAS – 94
- NT – 43
Percentage of companies entering external administration compared to the number of registered companies
- 0.33%
Number of registered liquidators
- 642
Background
ASIC releases weekly insolvency statistics to report on the level of company insolvency in Australia.
ASIC also releases monthly and quarterly statistics on the number of registered liquidators practicing in Australia, which had increased over the previous financial year but fallen slightly this year. On 30 June 2024, there were 642 registered liquidators.
Editor's note:
On 26 July 2024, the following statistics were amended:
- in paragraph three - ‘Other services (9.3%)’ was rounded down to 9%, and
- in paragraph four - ‘Restructuring appointments grew by over 300%’ was corrected to 200%.
ASIC is Australia’s corporate, markets and financial services regulator.