Analysis of Asic’s Latest External Administration Appointments Statistics from June 2015
Australian companies entering external administration in June jumped substantially to 1,022 versus 878 in May. External administration appointments have reached 4,705 in the first half of 2015, well up on the 4,322 recorded in the first half of 2014.
The month’s biggest moves in external administration appointments were seen in Queensland (236 in June vs. 186 in May), New South Wales (366 in June vs. 339 in May) and Victoria (269 in June vs. 231 in May). In South Australia there was a jump from relatively steady results throughout the year (40 in June vs. 28 in May) and in Western Australia a similar rise (87 in June vs. 66 in May).
Having eased monetary policy by 25 basis points to an all-time low of 2% in May, the Reserve Bank of Australia (“RBA”) left the cash rate unchanged at its June meeting. RBA Governor Glenn Stevens said that: “In Australia, the available information suggests the economy has continued to grow, but at a rate somewhat below its longer-term average.” Mr. Stevens also noted that household spending had improved, including a large rise in dwelling construction and that exports were rising.
In this edition of Insolvency Insights, Joanne Dunn (Senior Managing Director) provides an overview on the acceptance of security by the ATO.
Lastly, in our outlook for the market, we note that job advertisements fell 0.4% month-on-month to 146,121 advertisements in July in seasonally adjusted terms after increasing in each of the previous three months.