Monthly Credit Risk Insights by Alares
27th July 2026
As we enter into the new financial year, we take stock of the current trends that have presented so far in 2026.
Key highlights in June
• Insolvencies remain stubbornly high, almost on par with the 2025 highs.
• The ATO's tax debt reporting continues to soften, ever so slightly.
• Personal bankruptcies continue to trickle upwards.
Insolvencies in Jun reached the highest monthly total so far in 2026
Overall numbers were only slightly below the highs from 2025.
Compared to historical levels, insolvency numbers remain stubbornly high
June numbers were almost double the historical pre-COVID levels.
Small business restructuring appointments (SBR) continue to decline year-on-year
Increased scrutiny from the ATO continues to weigh on the SBR process.
SBRs in Jun accounted for just over 10% of all new appointments
The ATO's disclosure of business tax debts continued to trickle downward
However, overall numbers remain well above 2025 with 35,000 businesses still subject to ATO reporting.
Meanwhile, the ATO's Court recoveries remain high
June showed another slight increase in ATO Court filings on a year-on-year basis.
Winding up applications remain historically high
Winding up applications are currently showing no signs of retreat, continuing to increase year-on-year.
Court recoveries from the big four banks remain steady
Numbers continue to track more or less inline with 2025.
Meanwhile, creditor-initiated bankruptcy applications continue to trickle upwards
Overall numbers remain slightly below historical levels, however cost of living is clearly impacting borrowers as creditor-initiated sequestrations rise.
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
