More than 10,000 Australian business are expected to go into administration this financial year, if the current rate of insolvencies continue.
Releasing third quarter data, the Australian Securities & Investments Commission (ASIC) said the number of Australian companies failing was increasing.
ASIC said, with only one quarter remaining this financial year, it was expected that the number of companies entering external administration by June 30 would exceed 10,000, a level not seen since the 2012–2013 financial year.
The current data shows that from July 1, 2023, to March 31, this year, 7742 companies entered external administration, a 36.2 percent increase on the previous corresponding nine-month period.
Construction (2142) and accommodation and food services industries (1174) represented the greatest number of company failures, accounting for nearly 27.7 percent and 15.2 percent respectively.
The data also revealed restructuring (878) and court liquidation appointments (1593) increased by 294.6 percent and 218.8 percent respectively, when compared to the previous corresponding period.
ASIC said these numbers were higher than the numbers recorded for the full year period ending June 30, 2023.
