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ARTICLE · 11 NOVEMBER 2024

Insolvency update: The growth industry nobody asked for

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Insolvency appointments are often seen as a litmus test for the economy.

AustraliaInsolvency/Bankruptcy/Re-Structuring
Hayden Asper
Hayden Asper
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An insolvency practitioner's view on the rise of financial distress.

No one has ever accused me of being fashionable. In fact, accountants are generally regarded as the least fashionable people in the world; but, much like high-waisted jeans or oversized blazers, insolvency is back in fashion. The last 12 months have certainly seen an increase in the demand for insolvency services. Insolvency appointments are often seen as a litmus test for the economy, after all, small business is the biggest employer in Australia.

Record appointments

External administration appointments are currently at record highs. There were 11,053 appointments in FY2024, beating the previous record high of 10,757 in FY2012. This was off the back of record lows in the industry: during the COVID-19 pandemic monthly appointment numbers dipped to the lowest since the year 2000.

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