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

In March, there were 1,122 new personal insolvencies, an increase of 214 from February.
The breakdown of these insolvencies includes 673 bankruptcies, 435 debt agreements, 12 personal insolvency agreements, and two insolvent deceased estates. Additionally, there were seven new temporary debt protections granted.
Among the individuals entering insolvency, 350 were involved in business activities—such as sole traders, partners, or company directors—up from 256 in February.
For cases where AFSA could identify the individual's industry, the most common sectors were construction, health care and social assistance, and retail trade.

You can read their full report here - https://www.afsa.gov.au/newsroom/provisional-personal-insolvencies-increased-march-2025

 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

 Tim Xenos, former CEO of FAL Healthy Beverages (Coco Joy), has been sentenced to 18 months imprisonment via an Intensive Corrections Order (ICO) for misusing over $100,000 of company funds for personal legal and bankruptcy expenses. While bankrupt, Xenos illegally managed the company, used his position dishonestly for financial gain, and failed to disclose income to his bankruptcy trustee.

Found guilty in February 2025, Xenos showed no contrition, and the court mandated 200 hours of community service. He is now disqualified from managing companies until 27 February 2030. The case, prosecuted by the Commonwealth DPP following an ASIC referral, is under appeal. The offences occurred between 2023 and 2024, with Xenos previously bankrupt from 2011 to 2015.

Read the full ASIC Article here 

Over the last 10 years, there has been an ongoing discussion regarding an alternative to bankruptcy where the debtor has limited assets and there is little prospect of a return to creditors.

A proposal for a 1-year bankruptcy was put before Parliament, but didn’t proceed.  The Government has now proposed a new alternative, the Minimal Asset Procedure (“MAP”).   The potential elements of the MAP are:

• there be a maximum debt threshold of $50,000
• the MAP would last for 12 months, with a period of 4 years post-discharge to be      listed on the NPII
• a maximum threshold for income would be determined for eligibility for entry into a MAP
• a maximum threshold of $10,000 in assets with exceptions for tools of trade and a vehicle to be eligible for entry into a MAP
• a debtor may only enter into a MAP once during their lifetime
• a MAP should be less onerous than a bankruptcy

The proposal is still at the discussion stage, so watch this space.