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How to interpret ASIC insolvency statistics: Series 1, 1A, 1B and Series 2, 2A, 2B

The following commentary on Series 1 and Series 2 relates to data collected and published up to 31 July 2022.

Before 31 July 2022, we published Series 1, 1A, 1B, 2, 2A and 2B as separate datasets with static tables and charts. We now publish these series in a single dataset with dynamic tables and charts, collectively referred to as Series 1 and Series 2.

Set out below is an explanation of how to interpret the historical series to 31 July 2022. For information on how to interpret our insolvency statistics after this date, see Information Sheet 80 How to interpret ASIC insolvency statistics (INFO 80).

Insolvency statistics released before July 2022

We previously released the following insolvency statistics to assist in determining the level of company insolvency in Australia:

You can download each of these historical series from our website in Excel workbook format.

Please note the following:

  • There are no reliable insolvency statistics available before January 1999 for publication.
  • We prefer the use of Series 1 and 1A statistics when explaining trends in corporate business failure because they are a more accurate measure of the number of companies subject to a formal appointment – a company might appear more than once in Series 2 statistics (e.g. if it were under more than one form of external administration).
  • Insolvency statistics exclude members’ voluntary windings up. This is because these administrations involve the winding up of solvent companies rather than insolvent companies.

Series 1: Companies entering external administration and controller appointments (January 1999 – July 2022)

The historical Series 1 recorded the number of companies entering into external administration (including schemes of arrangement) and controller appointments for the first time. We analysed and presented the data according to region and appointment type.

The data was released monthly, and contains monthly, quarterly and annual data. For weekly data, see Series 1B.

We only included a company once in these statistics, regardless of whether it subsequently entered another form of external administration. The only exception occurred when a company, taken out of external administration (e.g. as the result of a court order), later re-entered external administration.

Series 1A: Companies entering external administration and controller appointments by industry (July 2013 – July 2022)

This series was an extension of Series 1 and provided data on the number of companies entering a form of external administration or controller appointment for the first time each month by industry.

Series 1B: Companies entering external administration and controller appointments – Weekly data (April 2020 – September 2022)

This series contains weekly data of companies entering external administration and controller appointments for the first time. The data is presented according to the initial type of appointment, region and industry. We started releasing these statistics in April 2020 as a result of the COVID-19 pandemic.

Note that the series includes weekly, rolling 12-month and financial year-to-date statistics compared to the previous financial year and base level (average of FY 2017, FY 2018 and FY 2019 external administration and controller appointments).

Series 2: All external administration and controller appointments (January 1999 – July 2022)

Our historical Series 2 statistics show the total number of external administration and controller appointments recorded. The data is categorised by type of appointment and region.

The data was released monthly, and contains monthly, quarterly and annual data. For weekly data, see Series 2B.

As a company can be under more than one form of external administration or controller appointment at any one time and can progress from one type to another, these statistics include some companies more than once. For this reason, the number of external administration and controller appointments (Series 2) are greater than the number of companies that went into external administration for the first time (Series 1). See examples below.

Examples of how historical Series 1 and 2 statistics were recorded

  • A court may appoint a provisional liquidator to a company. Later, the provisional liquidator’s appointment may conclude when the court appoints a liquidator. These roles differ, and the law treats them as separate appointments. Both Series 1 and Series 2 statistics record the appointment of the provisional liquidator, but only Series 2 (all external administration and controller appointment statistics) will count the subsequent appointment of the liquidator. Note that simplified liquidations are not a separate appointment but are disclosed separately as they follow a simplified process.
  • When a company goes into voluntary administration and creditors resolve that the company enter into a deed of company arrangement. Both Series 1 and Series 2 statistics record the initial appointment of the administrator, but only Series 2 (all external administration and controller appointment statistics) will count the subsequent appointment of the deed administrator.

Note: We amended the methodology for compiling statistics for Series 2 commencing 1 May 2018. Series 2 and 2A will not reconcile before 1 May 2018 due to the series break in Series 2 statistics, but will do so after 1 May 2018. We have not amended Series 2 statistics published before 1 May 2018.

Series 2A: Detail of all external administration and controller appointments (July 2017 – July 2022)

These monthly statistics contain the details of the external administration and controller appointments recorded in Series 2. The details include:

  • ACN and organisation name
  • the person appointed (lodging party only, so will not list joint appointees), or company appointed (possible for controllers or managing controllers only)
  • appointment date
  • industry type
  • state of incorporation
  • appointment type
  • document number and form type (notifying ASIC of the appointment).

Note: ASIC publishes Series 2A statistics for insolvency appointments on or after 1 July 2017. See also note above about Series 2 series break from 1 May 2018 onwards.

Series 2B: Notification of all external administration and controller appointments – Weekly data (March 2021– September 2022)

Series 2B contains weekly data of the total number of external administration and controller appointments recorded. The data is categorised by type of appointment, region and industry. We started releasing these weekly statistics in March 2021 as a result of the COVID-19 pandemic.

Note that the series includes weekly, rolling 12-month and financial year-to-date statistics compared to the previous financial year and base level (average of FY 2017, FY 2018 and FY 2019 external administration and controller appointments).

As a company can be under more than one form of external administration or controller appointment at any one time and can progress from one type to another, these statistics include some companies more than once. For this reason, the number of external administration and controller appointments in this weekly data (Series 2B) are greater than the number of companies recorded in Series 1B as entering external administration for the first time.

Source of Series 1, 1A, 1B and Series 2, 2A, 2B data

The source of these data series was principally the notification of appointment (e.g. Form 505) lodged with ASIC by external administrators and controllers.

The data was available from December 2001 (but reconstructed from other information back to January 1999) and was expanded in July 2013 to include industry classification with the commencement of Series 1A.

Region information

Region information is based on the state or territory in which the company was originally incorporated. For foreign companies, we use the registered address of the company.

Industry information

Industry information aligns with the 2006 Australian and New Zealand Standard Industrial Classification (ANZSIC) divisions indicated by the external administrator or controller, included on Form 505 since July 2013 and updated in May 2021.

Summary analysis of Series 1 and 2 statistics

Quarterly summary statements containing basic analysis of ASIC Series 1 and Series 2 insolvency statistics are available from the website. However, they were discontinued after December quarter 2018.

Where can I get more information?

Last updated: 19/10/2022 03:47