Risk Watch Essentials – June 2021.
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The tables below summarise the data essentials captured from our daily Risk Watch publication, which provides a synopsis of the insolvency market for June 2021.
In addition to the tables below five (5) companies appointed a Restructuring Practitioner during the month of June 2021 in relation to the Debtor in Possession restructuring process for small businesses.
No. of Registered Liquidators in Australia as at June 2021
| Registered Liquidators | Australia | NSW | VIC | QLD | WA | ACT | SA | NT | TAS |
| TOTAL | 647 | 248 (38%) | 158 (24%) | 109 (17%) | 65 (10%) | 10 (2%) | 45 (7%0 | 3 (<1%) | 9 (1%) |
Winding up Applications filed with the Court in June 2021
| Winding up Applications | Australia | NSW | VIC | QLD | WA | ACT | SA | NT | TAS |
| TOTAL | 182 | 45 (25%) | 65 (36%) | 55 (30%) | 11 (6%) | 0 (0%) | 4 (2%) | 2 (1%) | 0 (0%) |
Analysis:
A total of 182 Winding Up applications were filed throughout Australia in June 2021, the majority of which were in Victoria (65 or 36%), ), Queensland (55 or 30%), New South Wales (45 or 25% and Western Australia (11 or 6%). There were smaller numbers of winding up applications filed in the South Australia, Northern Territory and Tasmania and none in Australian Capital Territory.
There was only one winding up applications filed by the ATO in June 2021.
Formal Appointments in June 2021
| Formal Appointments | Australia | NSW | VIC | QLD | WA | ACT | SA | NT | TAS |
| TOTAL | 606 | 286 (47%) | 144 (24%) | 107 (18%) | 35 (6%) | 11 (2%) | 20 (3%) | 1 (0%) | 2 (0%) |
| Court Liquidation | 112 | 36 (32%) | 43 (38%) | 22 (20%) | 7 (6%) | 1 (1%) | 2 (2%) | 0 (0%) | 1 (1%) |
|
Creditors’/Members’ Voluntary Liquidation
|
407 | 199 (49%) | 85 (21%) | 73 (18%) | 24 (6%) | 6 (1%) | 18 (4%) | 1 (0%) | 1 (0%) |
| Voluntary Administration | 87 | 51 (59%) | 16 (18%) | 12 (14%) | 4 (5%) | 4 (5%) | 0 (0%) | 0 (0%) | 0 (0%) |
Analysis:
There were a total of 606 formal appointments throughout Australia in June 2021, the majority of which were in New South Wales (286 or 47%), Victoria (144 or 24%), and Queensland (107 or 18%).
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 39% 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.
