Monthly Credit Risk Insights by Alares
28th August 2026
Insolvencies remain stubbornly high despite a slight drop from the peaks of 2025. Business conditions remain difficult amid an ongoing wave of pressure from the tax office.
Key highlights in July
• Small business restructuring appointments continue to drop.
• The ATO's tax debt reporting rebounded in July after a steady decline in May and June.
• Personal bankruptcies continue to trickle upwards.
Monthly insolvency numbers remain slightly below the peak from last year
This continues the trend we have seen throughout 2026.
However, compared to historical levels, insolvency numbers still remain stubbornly high
Overall numbers remain significantly above pre-pandemic levels, indicating that times remain tough for many businesses.
Small business restructuring appointments (SBR) continue to decline year-on-year
Overall SBR numbers are back down to levels last seen in 2023 as increased scrutiny from the ATO continues to bite.
SBRs in July accounted for less than 10% of all new appointments
The ATO's disclosure of business tax debts rebounded in July
This follows a small but steady decline in May and June. Will the July increase continue into August? Stay tuned for next month's update to find out.
Meanwhile, the ATO's Court recoveries remain high
However, overall numbers remain well above 2025 with 35,000 businesses still subject to ATO reporting.
Winding up applications remain high
While overall insolvency numbers have dropped slightly from the 2025 peak, new winding up applications remain historically high, suggesting more insolvency pain to come.
Court recoveries from the big four banks remain steady
July saw a slight year-on-year increase from 2025, suggesting that numbers may again be rising after last year's drop.
Meanwhile, creditor-initiated bankruptcy applications continue to trickle upwards
Overall numbers remain below historical levels, however numbers continue to steadily 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
