Australian construction-industry insolvencies surged nearly 21 per cent last financial year to a new high, reflecting what the corporate regulator said was a greater use of insolvency appointments by small businesses restructuring debts in a way that would let them keep trading.

Figures published by the Australian Securities and Investments Commission on Monday showed economy-wide insolvency appointments for the year to June revealed a jump in construction-industry insolvencies – the single largest sector – from 2977 in FY24 to 3595, while total insolvencies rose 33 per cent to 14,716.