The Australian Financial Security Authority (“AFSA”) recently released the Regional Personal Insolvency Statistics for the quarter ending December 2014 (“the quarter”). The statistics identifies the regions in each state with the highest number of debtors for the quarter.
The quarter has seen NSW as the state with highest number personal insolvency activities totalling a number of 2,194 including cases of Bankruptcies, Debt Agreements or Personal Insolvency agreements. The regions identified as the highest debtor activities included Wyong with approximately 3.97% of cases, Penrith with 3.33% and Mount Druitt with 3.24%. Wyong and Mount Druitt were listed with the highest number of debtors for the September 2014 quarter.
The regions in the ACT with the highest debtor activities for the quarter are Belconnen, Tuggeranong and Gungahlin. These regions total to approximately 74.07% of the total insolvency activity for the period. These regions were also identified in the September 2014 quarter as the highest related debtor activity.
A total of 1,385 personal insolvency related cases were undertaken in Victoria for the quarter and the regions with the highest debtor action were Wyndham (76 debtors), Casey-South (70 debtors) and Melton Bacchus Marsh (68 debtors). These regions only make up a small portion of the personal insolvency activities within the state.
Townsville, Ormeau-Oxenford and Mackay were listed as the highest debtor related activity regions for Queensland making up 12.09% of cases for the quarter. The three regions were also listed in the September 2014 quarter as the highest.
South Australia had a total of 437 personal insolvency activities and 29.75% were from Onkaparinga, Charles Sturt and Salisbury.
The state with the lowest number of personal insolvency activities for the quarter was the Northern Territory totalling to 55 cases. Palmerston, Alice Springs and Darwin Suburbs made up 70.90% of the cases.
Wanneroo, Rockingham and Joondalup had a total of 145 cases of personal insolvency activities making them the highest debtor related activity regions for Western Australia. The state saw a total of 604 cases for the quarter.
Tasmania had a total of 180 personal insolvency activities and 47.22% were up by the regions Launceston, Hobart-North West and Burnie-Ulverstone.
Overall a total of 6,888 personal insolvency cases were established in the quarter which is a decrease of 7.7% in comparison with the September 2014 quarter with a total of 7466 personal insolvency related activities. The significant decrease in the personal insolvency activities may be related to the decrease in the interest rate which allows individuals to attain funds more easily and at a comparatively cheaper rate. The decrease in the interest rate could potentially be detrimental to those who have recently borrowed funds because even a trivial increase could make a solvent individual insolvent.