FY2023 Insolvency Update

We are 8-weeks into FY2022 and now have a bit of data, so its a good time to check in on corporate insolvency appointment numbers.

After two years of well below trend appointment numbers, appointments are now back to long term trend levels so far in FY2022.

Creditor's Voluntary Wind-ups accounted of the vast majority of the increase in appointments, with CVL's up 80% on the same period last year. Anecdotally, a lot of this is driven by the ATO's increased issuing of DPNs.

Small Business Restructuring has also seen increasing popularity with 43 appointments in the last 8-weeks (up from 5 in the same period last year). It's great to see Director's starting to take advantage of this option to restructure, rather than wind up their business.

All stat from ASIC Series 2B - Weekly Insolvency Statistics