Industry data
Company insolvency statistics
The numbers behind company insolvency in Australia: how many companies enter liquidation, voluntary administration or restructuring, or have a receiver appointed, which industries and states they come from, and the causes of failure their external administrators report. Each figure links to ASIC and shows the period it applies to.
Reviewed 29 October 2026
Key figures
- 14,153 companies entered external administration or had a controller appointed for the first time
- 6,386 companies entered external administration for the first time through a creditors' voluntary liquidation
- 1,714 companies entered external administration for the first time through a small business restructuring
- 3,472 construction companies entered external administration for the first time
- 56.8% of initial reports by external administrators and receivers nominated inadequate cash flow or high cash use as a cause of failure
Companies entering external administration
Companies entering external administration, such as liquidation, voluntary administration or restructuring, or having a receiver or other controller appointed, from ASIC's insolvency statistics. ASIC counts each company only at its first appointment, unless the company is taken out of external administration and later re-enters it. The figures cover companies only, not unincorporated businesses. Financial years run from July to June.
14,153
companies entered external administration or had a controller appointed for the first time
Down from 14,722 in 2024-25. Each company is counted once, at its first appointment, unless it leaves external administration and later re-enters it. Members' voluntary liquidations, which wind up solvent companies, are not included.
Link to this figure14,722
companies entered external administration or had a controller appointed for the first time
Each company is counted once, at its first appointment, unless it leaves external administration and later re-enters it.
Link to this figure4,242
companies entered external administration or had a controller appointed for the first time, a provisional count
ASIC marks September 2026 as provisional, so this count may change in later editions. ASIC notes that August 2026 includes appointments involving 542 related companies in a large property development and construction group, which materially affected the results for that month.
Link to this figure3,556
companies entered external administration or had a controller appointed for the first time
The same quarter a year earlier, for comparison with the latest quarter.
Link to this figure18,740
appointments of external administrators and controllers, counting later and transitional appointments as well as first ones
ASIC Series 2, which counts every appointment, so a company can be counted more than once, for example when a voluntary administration is followed by a deed of company arrangement. ASIC prefers Series 1, the first appointment count, for explaining trends in company failures. ASIC shows the adoption of a simplified liquidation separately and does not count it as an appointment.
Link to this figure| Financial year | Companies |
|---|---|
| 2019-20 | |
| 2020-21 | |
| 2021-22 | |
| 2022-23 | |
| 2023-24 | |
| 2024-25 | |
| 2025-26 |
Each company is counted once, at its first appointment, unless it leaves external administration and later re-enters it. ASIC prefers this series for explaining trends in corporate failures. Includes companies that had a receiver or other controller appointed.
Link to this chartLiquidations, administrations and restructurings
How companies entered external administration, by the type of their first appointment. A company that starts in voluntary administration and then goes into liquidation is counted as a voluntary administration, so these are not counts of every liquidation.
6,386
companies entered external administration for the first time through a creditors' voluntary liquidation
A liquidation of an insolvent company, started by its directors and shareholders. Counted by the company's first appointment, so a company that moves into liquidation from voluntary administration is counted as a voluntary administration.
Link to this figure3,144
companies entered external administration for the first time through a court liquidation
A court liquidation starts with a court order, usually after an application by a creditor. Counted by the company's first appointment, so a company placed in court liquidation after a provisional liquidator or another appointment is not counted here.
Link to this figure1,435
companies entered external administration for the first time through a voluntary administration
A voluntary administrator takes control of the company, investigates its affairs and recommends to creditors whether it should enter a deed of company arrangement, go into liquidation or be returned to its directors. Counted by the company's first appointment, so a company that goes on to liquidation is still counted here.
Link to this figure1,714
companies entered external administration for the first time through a small business restructuring
In a small business restructuring, a restructuring practitioner helps the directors of an eligible company develop a plan to repay its debts, and oversees the plan if creditors accept it. Down from 2,918 in 2024-25.
Link to this figure| Type of first appointment | Companies |
|---|---|
| Creditors' voluntary liquidation | |
| Court liquidation | |
| Restructuring | |
| Voluntary administration | |
| Receiver and manager appointed | |
| Receiver appointed | |
| Controller appointed, other than a receiver or managing controller | |
| Provisional liquidation | |
| Managing controller appointed, other than a receiver and manager |
Each company is counted once, by its first appointment, so a company that went from voluntary administration into liquidation is counted as a voluntary administration. Restructuring is the small business restructuring process. Scheme administrator appointments and foreign or registrable Australian body wind-ups, of which there were none, are left out.
Link to this chartInsolvencies by industry
Companies entering external administration or having a controller appointed for the first time, by the industry recorded in the notice the external administrator or controller lodged with ASIC.
3,472
construction companies entered external administration for the first time
ASIC Series 1, which counts the first time a company enters external administration or has a controller appointed. The industry is the one recorded on the Form 505 lodged by the external administrator or controller.
Link to this figure2,078
accommodation and food services companies entered external administration for the first time
ASIC Series 1, which counts the first time a company enters external administration or has a controller appointed. The industry is the one recorded on the Form 505 lodged by the external administrator or controller.
Link to this figure813
transport, postal and warehousing companies entered external administration for the first time
ASIC Series 1, which counts the first time a company enters external administration or has a controller appointed. The industry is the one recorded on the Form 505 lodged by the external administrator or controller.
Link to this figure| Industry | Companies |
|---|---|
| Construction | |
| Accommodation and food services | |
| Other services | |
| Retail trade | |
| Professional, scientific and technical services | |
| Transport, postal and warehousing | |
| Administrative and support services | |
| Manufacturing | |
| Rental, hiring and real estate services | |
| Health care and social assistance | |
| Financial and insurance services | |
| Arts and recreation services | |
| Information media and telecommunications | |
| Wholesale trade | |
| Mining | |
| Agriculture, forestry and fishing | |
| Electricity, gas, water and waste services | |
| Education and training | |
| Public administration and safety |
Industry as recorded in the external administrator's or controller's notice to ASIC. The 36 companies with no industry recorded are left out. Includes companies that had a receiver or other controller appointed.
Link to this chartInsolvencies by state and territory
Companies entering external administration or having a controller appointed for the first time, by the state or territory where the company mainly carried on business.
5,367
companies based in New South Wales entered external administration for the first time
By principal place of business: where the directors said the company mainly carried on business when the appointment was made. ASIC Series 1, which counts the first time a company enters external administration or has a controller appointed.
Link to this figure4,100
companies based in Victoria entered external administration for the first time
By principal place of business: where the directors said the company mainly carried on business when the appointment was made. ASIC Series 1, which counts the first time a company enters external administration or has a controller appointed.
Link to this figure| State or territory | Companies |
|---|---|
| New South Wales | |
| Victoria | |
| Queensland | |
| Western Australia | |
| South Australia | |
| Australian Capital Territory | |
| Tasmania | |
| Northern Territory |
By principal place of business: where the directors said the company mainly carried on business when the appointment was made. Where that is overseas or not recorded, ASIC uses the state of incorporation. Includes companies that had a receiver or other controller appointed.
Link to this chartWhy companies fail
Causes of failure and company size from the initial reports external administrators and receivers lodge with ASIC. Not every appointment needs a report, and reports are lodged some time after the appointment, so ASIC says these figures do not line up with the counts above. The latest full year they cover is earlier.
9,585
initial reports by external administrators and receivers in ASIC's statistics
External administrators and receivers lodge an initial report with ASIC when it appears a person may have committed an offence or misconduct, or, in a liquidation, that unsecured creditors may receive no more than 50 cents in the dollar. Some reports are also lodged for statistical purposes only. The reports do not cover every company that enters external administration.
Link to this figure56.8%
of initial reports by external administrators and receivers nominated inadequate cash flow or high cash use as a cause of failure
A report can nominate more than one cause, so the shares add to more than 100%. Causes are the external administrator's or receiver's opinion, as stated in the report.
Link to this figure50.3%
of initial reports by external administrators and receivers nominated poor strategic management of the business as a cause of failure
A report can nominate more than one cause, so the shares add to more than 100%. Causes are the external administrator's or receiver's opinion, as stated in the report.
Link to this figure49.8%
of initial reports by external administrators and receivers nominated trading losses as a cause of failure
A report can nominate more than one cause, so the shares add to more than 100%. Causes are the external administrator's or receiver's opinion, as stated in the report.
Link to this figure| Nominated cause | Share of reports |
|---|---|
| Inadequate cash flow or high cash use | |
| Poor strategic management of business | |
| Trading losses | |
| Other | |
| Poor financial control including lack of records | |
| Under capitalisation | |
| Poor economic conditions | |
| Poor management of accounts receivable | |
| Dispute among directors | |
| Fraud | |
| Natural disaster | |
| Business restructuring | |
| Industry restructuring | |
| Deed of company arrangement failed |
Share of initial reports by external administrators and receivers that nominated each cause. A report can nominate more than one cause, so the shares add to more than 100%. Causes are the external administrator's or receiver's opinion, as stated in the report.
Link to this chart| Full-time equivalent employees | Share of reports |
|---|---|
| Less than 5 | |
| 5 to 19 | |
| 20 to 199 | |
| 200 or more | |
| Not known |
Share of initial reports by external administrators and receivers, by the company's number of full-time equivalent employees as given in the report.
Link to this chartCommon questions
How many companies went into liquidation in Australia?
6,386 companies entered external administration for the first time through a creditors' voluntary liquidation, and 3,144 through a court liquidation, according to ASIC. These count first appointments only, so a company that went into liquidation after a voluntary administration is counted as a voluntary administration instead.
How many businesses go insolvent in Australia each year?
14,153 companies entered external administration or had a controller appointed for the first time, according to ASIC. These figures cover companies only, not unincorporated businesses. The chart above shows the total for each financial year.
Are company insolvencies rising in Australia?
14,153 companies entered external administration or had a controller appointed for the first time, compared with 14,722 the year before. Over the latest complete months published, the count was 4,242 , compared with 3,556 for the same months a year earlier. The latest figure is provisional, and ASIC notes that August includes the related companies of a large property development and construction group.
Which industry has the most insolvencies?
Construction had the most companies entering external administration for the first time, with 3,472 , followed by accommodation and food services with 2,078 . The industry chart above shows every industry.
Which state has the most company insolvencies?
New South Wales had the most, with 5,367 , followed by Victoria with 4,100 . ASIC places each company in the state or territory where it mainly carried on business.
How many companies go into administration?
1,435 companies entered external administration for the first time through a voluntary administration. In a voluntary administration, the administrator takes control of the company, investigates its affairs and recommends to creditors whether it should enter a deed of company arrangement, go into liquidation or be returned to its directors.
What is a small business restructuring?
A small business restructuring is a process in which a restructuring practitioner helps the directors of an eligible company develop a plan to repay its debts, and oversees the plan if creditors accept it. 1,714 companies entered external administration for the first time this way.
Why do companies fail?
In the initial reports external administrators and receivers lodge with ASIC, the cause of failure nominated most often was inadequate cash flow or high cash use, in 56.8% of reports. Poor strategic management of the business was nominated in 50.3% and trading losses in 49.8% . A report can nominate several causes, and the causes are the external administrator's or receiver's opinion.
How many small businesses go insolvent in Australia?
ASIC's counts of companies entering external administration are not split by business size, but its statistics from the initial reports of external administrators and receivers are. There were 9,585 of these reports, which do not cover every company that enters external administration, and the size chart above shows the companies in them by number of full-time equivalent employees. Separately, 1,714 companies entered a small business restructuring.
Using these figures
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How these figures are put together
Every figure on this page comes from the published source linked beside it and applies to the period shown with it. Figures are copied as published. Nothing is estimated, adjusted or combined from different sources.
Each figure is checked against its source when the page is reviewed, and the review date is shown at the top of the page. If a source publishes a newer figure before then, or you spot an error, let us know through the contact page.
Sources
- Australian Securities and Investments Commission (ASIC): Australian insolvency statistics, Series 1 and Series 2, published 26 October 2026. Forms lodged with ASIC by external administrators and controllers, data to 11 October 2026. Series 1 counts the first time a company enters external administration or has a controller appointed; Series 2 counts all appointments. Updates: Weekly, two weeks in arrears. Retrieved 29 October 2026.
- Australian Securities and Investments Commission (ASIC): Insolvency statistics Series 3.3: External administrators' and receivers' reports time series, 1 July 2004 to 30 June 2025. Initial statutory reports lodged with ASIC by external administrators and receivers, released December 2025. Updates: Annual. Retrieved 29 October 2026.
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