Decline in Personal Insolvencies: A Positive Sign for Australia's Economy

Of the new personal insolvencies, 601 were bankruptcies, 498 were debt agreements, and 17 were personal insolvency agreements. Additionally, 16 new temporary debt protections were recorded, offering individuals a 21-day respite from unsecured creditor enforcement to seek advice or consider insolvency options.

Where industry information was available, the top three most common employment industries of individuals entering personal insolvency were construction, health care and social assistance, and other services. In October, 318 individuals entering personal insolvency were also involved in a business, including sole traders, partners, or company directors. This is a decrease from 323 in September 2025.

AFSA encourages anyone experiencing financial stress to seek support early. Free and confidential assistance is available through the National Debt Helpline at https://www.ndh.org.au. For those facing or considering formal insolvency options, AFSA recommends contacting a registered trustee or registered debt agreement administrator for professional guidance.

In summary, the decline in personal insolvencies in October 2025 reflects an improvement in the financial well-being of Australians. However, it remains essential for individuals facing financial difficulties to seek assistance promptly to explore available options and mitigate potential risks.