Latest News

In Australia, when an individual wishes to declare themselves bankrupt, they are required to complete and lodge a Debtor’s Petition and Statement of Affairs with the Official Receiver at the Australian Financial Security Authority (AFSA).

In 2022, AFSA merged the Debtor’s Petition and Statement of Affairs to create a new form called the “Bankruptcy Form”.  

A separate Statement of Affairs continued to be used by debtors who had been made bankrupt by court order; Creditor’s Petition.

With effect from 1 September 2025, the Bankruptcy Form has been replaced with a new Debtor’s Petition and Statement of Affairs to better align with the requirements of the Bankruptcy Act.

If you are in financial difficulty and wish to discuss the options available for dealing with your debts, please contact Helen Joyce at Bluestone Advisory on 1300 001 710. We offer an initial free consultation to access your situation and advise you as to the options available to you.

Australian Financial Security Authority (AFSA) has released the June Quarter Personal Insolvencies report.

The number of new personal insolvencies has increased to 3,179 in the June 2025 quarter, a 7.9% increase from the same period in 2024.

Of these, 928 were involved in a business as a sole trader, in a partnership or as a director in a company.

Summary of national figures for June quarter 2025:
• 1,780 were bankruptcies
• 1,343 were debt agreements
• 51 were personal insolvency agreements
• 5 were insolvent deceased estates

You can read their full report here 

Previously Buy Now Pay Later (BNPL) products operated outside of the National Consumer Credit Act. With effect from Tuesday, 10 June 2025, BNPL products such as Afterpay, Zip and Humm will be treated the same as traditional credit products such as credit cards.

As BNPL transactions now account for approximately $19 billion of transactions in Australia annually, these changes will affect a significant number of Australians. 

Providers must now:

· Hold an Australian Credit Licence

· Be a member of the Australian Financial Complaints Authority (AFCA)

· Adhere to responsible lending obligations; and 

· Meet additional consumer protection standards.

The changes in practice:

· Providers must complete credit checks and enquiries about a consumer’s financial situation; and

· Report the credit checks on the consumer’s credit file

· Providers may also report missed or late payments on the consumer’s credit file

· This may have a negative impact on a borrower’s credit file, affecting lending for more traditional credit e.g. loans and mortgages or eligibility for a tenancy agreement.

The benefits:

· Better protection against irresponsible lending practices;

· Access to formal methods of dispute resolution through AFCA;

· Clearer processes for handling financial hardship; and

· More consistent consumer protections across all credit products.    

This is welcome news to those involved in assisting consumers who are experiencing financial difficulty.

 In his address at the 16th ATAX International Conference on Tax Administration, Commissioner of Taxation Rob Heferen has stated that Australia's tax debt has reached $105.1 billion. Notably, nearly half of this amount—$46.4 billion—is considered collectable debt, almost double the $26.5 billion owed in 2019.

Commissioner Heferen acknowledged that 22,000 taxpayers, representing about 1% of all debtors, are responsible for $11 billion, or 20% of the collectable debt. These taxpayers are now the focus of the Australian Taxation Office's (ATO) intensified debt collection efforts.

In the 2021–22 fiscal year, the ATO collected $545.8 billion out of the $590.3 billion due, reflecting a 90.1% voluntary compliance rate, which increases to 92.5% when including compliance actions.

The largest portion of the tax gap, amounting to $25.8 billion, stems from personal income taxes, with a net tax gap of 8.5%. This is attributed to individual taxpayers.

For the full article on Accounts Daily website - click HERE