The tables below summarise the data essentials captured from our daily Risk Watch publication, which provides a synopsis of the insolvency market for May 2021.

In addition to the tables below four (4) companies appointed a Restructuring Practitioner during the month of May 2021 in relation to the Debtor in Possession restructuring process for small businesses.

No. of Registered Liquidators in Australia as at May 2021

Registered Liquidators	Australia	NSW	VIC	QLD	WA	ACT	SA	NT	TAS
TOTAL	647	248 (38%)	159 (25%)	109 (16%)	65 (10%)	10 (2%)	46 (7%)	2 (<1%)	8 (1%)

Winding Up applications filed with the Court in May 2021

Winding Up applications	Australia	NSW	VIC	QLD	WA	ACT	SA	NT	TAS
TOTAL	152	49 (32%)	61 (40%)	24 (16%)	8 (5%)	3 (2%)	5 (3%)	1 (1%)	1 (1%)

Analysis:

A total of 152 Winding Up applications were filed throughout Australia in May 2021, the majority of which were in Victoria (61 or 40%), New South Wales (49 or 32%), Queensland (24 or 16%) and Western Australia (8 or 5%). There were smaller numbers of winding up applications filed in the South Australia, Northern Territory, Australian Capital Territory and Tasmania.

There were no winding up applications filed by the ATO in May 2021.

Formal Appointments in May 2021

Formal Appointments	Australia	NSW	VIC	QLD	WA	ACT	SA	NT	TAS
TOTAL	563	235 (42%)	139 (25%)	85 (15%)	47 (8%)	10 (2%)	32 (6%)	1 (0%)	14 (2%)
Court Liquidation	88	17 (19%)	39 (44%)	18 (20%)	4 (5%)	1 (1%)	8 (9%)	0 (0%)	0 (0%)
Creditors’/Members’ Voluntary Liquidation	423	205 (48%)	85 (20%)	59 (14%)	28 (7%)	9 (2%)	23 (5%)	0 (0%)	14 (3%)
Voluntary Administration	52	13 (25%)	15 (29%)	8 (15%)	15 (29%)	0 (0%)	1 (2%)	0 (0%)	0 (0%)

Analysis:
There were a total of 563 formal appointments throughout Australia in May 2021, the majority of which were in New South Wales (235 or 42%), Victoria (139 or 25%), and Queensland (85 or 15%).

Comparison of FY 2020 and FY 2021 Formal Appointments

The graph below shows the cumulative formal appointments for financial year 2020 and for 2021 financial year to date. The total number of formal appointments are 37% lower in financial year 2021 to date compared with the same time in financial year 2020. The number of formal appointments have fallen well below the pre-pandemic numbers rather than increase, which had been expected. This is likely due to businesses relying on Government pandemic relief measures together with the ATO being more focused on business support measures than commencing recovery procedures.