Monthly Risk Credit Insights by Alares

The first month of 2026 saw most risk indicators remain on par with 2025, the two key exceptions being a continued increase in winding up applications and ATO tax debt reporting.

 

Key highlights in January

•    Significant year-on-year increase in winding up applications.
•    Continued increase in ATO disclosure of business tax debt reporting.
•    Ongoing reduction in new small business restructuring appointments.

 

Insolvencies in January showed a slight decrease from last year

Overall numbers were still slightly above historical levels.  January is typically the lowest month of each year, so February numbers may be more telling in terms of trends moving forward.

 

 

New SBR appointments continue to trend downwards from the late 2024 / early 2025 peak

 

 

New SBR appointments continue to trend downwards from the late 2024 / early 2025 peak

New SBR appointments continue to trend downwards from the late 2024 / early 2025 peak

 

 

The ATO continues to increase its disclosure of business tax debt reporting

Despite a record number of insolvencies flushing through the system in 2025, the number of businesses subject to ATO tax debt reporting continues to rise, now approaching 33,000 businesses.

 

 

The ATO's Court recoveries in January remained consistent with the last two years

As with other risk indicators, January is a historically low month for ATO Court activity.  Stay tuned for next month's update to see what trends may take shape in the coming months.

 

 

Court recoveries from the big four banks also remained inline with last year

This follows a significant year-on-year decrease throughout 2025.

 

 

Meanwhile, Court recoveries from the non-bank lenders continue to trend slightly upwards

 

 

Winding up applications, however, showed another substantial year-on-year increase

Non ATO-initiated winding up applications in particular spiked in January as credit providers got a jump start in debt recovery starting the new year.

 

 

 

Alares provides critical due diligence data that is NOT captured by other providers.

For better insights into financial and reputational risks impacting your customers and suppliers, please get in touch.

Patrick Schweizer

Director, Alares
w: www.alares.com.au
e: patrick@alares.com.au
m: +61 418 739 921