Bankruptcies rise 6.1pc in 2017

The number of Australians filing for bankruptcy surged by 6.1pc last year, amid record mortgages and lacklustre wage growth.

Baldivis, in Western Australia, topped the list of suburbs affected by personal bankruptcies.

The number of Australians who filed for bankruptcy surged last year amid record mortgages and lacklustre wage growth.

More than 32,000 Australians went bankrupt in 2017, a 6.1 per cent rise from the prior year, according to new data released by credit information bureau illion.

It comes after the number of bankrupted Australians rose 4.7 per cent in 2016, compared to 2015.

“Consumer debt levels are rising steadily in Australia as a result of record mortgages and a surge in everyday essentials such as utilities, petrol and healthcare,” said illion chief executive Simon Bligh.

“These factors, combined with weak wage growth, are putting pressure on the wallets of Australians.”

Queensland recorded the highest number of personal bankruptcies off the back of Cyclone Debbie, which impacted tourism and mining projects. More than 9,400 Queenslanders went bankrupt in 2017, the bankruptcy analysis found.

“Major events such as natural disasters not only strain government coffers but have a negative impact on the local economy, particularly small and medium-sized businesses, as well as consumer confidence,” Mr Bligh said.

The report found that people filing for bankruptcy are getting younger, with the average age at 40.9 years in 2017, compared to the average age of 46.7 years back in 2013.

The West Australian suburb of Baldivis recorded 103 personal insolvencies in 2017, the highest number of any suburb. Illion said this was likely due to the fallout from the mining boom and housing cycle. Pakenham in Victoria recorded 93 bankruptcies while Craigieburn, also in Victoria, recorded 88 bankruptcies.

Bankruptcies: the top 10 suburbs