Business bankruptcies in Australia - Data and Analysis (2004-2033)

IBISWorld forecasts the number of business bankruptcies to fall by 24.8% in 2025-26, to 11,070. Business bankruptcies are coming off a high over the four years through 2024-25, as the number of bankruptcies surged following the end of the pandemic. The drop in current year, represents a normalisation in the number of business bankruptcies following significant volatility over the past five years.The COVID-19 outbreak caused significant uncertainty for many businesses. Yet, in response to the pandemic, government intervention and support measures averted high instances of bankruptcies. For example, Jobkeeper and rent relief assistance for many businesses eased the financial burden of the pandemic. Furthermore, several businesses were given opportunities to restructure and rearrange their affairs with the help of Government schemes following the initial outbreak. These schemes and initiatives limited the number of businesses filing for bankruptcy over much of the past five years. Indeed, business bankruptcies dropped by over 40.0% in 2020-21.The gradual removal of COVID-19 stimulus measures caused business bankruptcies to rise over the four years through 2024-25. The number of bankruptcies peaked in 2024-25, at 14,722, far above the long-term average. Many businesses had managed to delay entering into external administration due to government support during the pandemic, and this created a surge of companies entering insolvency as this support was removed. Business bankruptcy numbers are expected to start to normalise towards long-term pre-pandemic averages in 2025-26. Overall, IBISWorld forecasts the number of business-related bankruptcies to rise at an annualised 21.2% over the five years through 2025-26.