Company insolvencies up 19% in the September quarter: what ASIC’s figures mean for small business

04 Nov Company insolvencies up 19% in the September quarter: what ASIC’s figures mean for small business

ASIC’s latest monthly figures show 4,243 companies entered external administration for the first time from July to September 2026. That is 19% more than the 3,556 in the same quarter last year, and the highest first quarter in ASIC’s table, which runs from July 2019. August alone recorded 1,808, the highest single month in that table. The figures for recent months are preliminary and may change.

The full year to June 2026 told a different story

Over the year ended 30 June 2026, 14,153 companies entered external administration for the first time, 4% fewer than the 14,722 the year before. The new quarter suggests that dip has not lasted. In both periods the companies failing are concentrated in the same few industries, and most are small.

Where the failures are

Construction and hospitality together account for almost four in ten appointments. In our experience both run on thin margins, and tax and super are often the first payments to fall behind when cash is short.

Measured against the number of companies, failures are below their past peaks. Australia had 3,747,130 registered companies at 30 June 2026. The share entering external administration fell to 0.38%, from 0.41% the year before. That is well below the peaks of 0.56% in 2011–12 and 0.53% in 2012–13.

Smaller companies rarely reach a deal with creditors

In July ASIC released a review of 3,528 voluntary administrations, involving 5,020 companies, from 1 July 2021 to 30 June 2025 (REP 836). About half of the administrations that reached a second creditors’ meeting put a deed of company arrangement (DOCA) to creditors, and creditors approved 87% of them. Nearly half of the approved deeds let the company keep trading.

The catch is size. ASIC found larger companies were more likely to reach a DOCA, while smaller companies more often went to liquidation. ASIC suggests directors of smaller companies also consider whether another process, including small business restructuring, fits better.

What this means for directors

The numbers point the same way as our own work with small and medium businesses: the options narrow the longer a director waits.

• If the company is still trading and has liabilities of no more than $1 million, small business restructuring may let the directors stay in control while they put a plan to creditors.
• If the debts are larger or the business needs time and protection, voluntary administration can lead to a DOCA, but it costs more and suits larger companies better.
• If the business is no longer viable, an orderly liquidation can stop further losses building up, including the director’s own exposure.

ASIC has also launched a small business director essentials hub, which is a good starting point for directors who want to understand their obligations.

If you are a director, or an accountant advising one, and the company is behind on tax or super, talk to a registered liquidator early. The first conversation with Greengate is free and confidential. Contact us.

Sources: ASIC insolvency statistics, Series 1 (published 2 November 2026); ASIC Corporate Insolvency Update, Issue 41, October 2026.

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