Corporate insolvencies in Australia are on the increase, according to new data released by the Australian Securities and Investments Commission (ASIC).
The data, released this week, has revealed that corporate insolvencies rose 4.4 per cent up to the end of May.
According to the data, court liquidations rose by 8.6 per cent and director-initiated liquidations rose by 7.6 per cent.
However the senior executive leader of ASIC’s Insolvency Practitioners team, Adrian Brown said that by contrast, receivership and voluntary administration appointments had fallen.
Brown pointed out that despite suggestions that Western Australia was in the fast lane of a two-speed economy, it was also seeing its fair share of corporate insolvencies.
The ASIC data showed that while NSW dominated in terms of the number of external administration (41.2 per cent), the greatest increases were recorded in both Western Australia and the Northern Territory, with the ACT and Queensland actually recording decreases.
