Financial headwinds continue to impact Australians as ASIC’s latest figures reveal more hardship ahead
WCT Advisory grows three-fold to handle increasing workload
As the spiralling cost of living continues to wreak havoc on the average Australian, the latest corporate insolvency statistics from ASIC bear witness to the reality that is being felt across the board. And to help address the increase in demand for business and personal insolvency services, WCT Advisory Group has significantly expanded its capabilities, merging with former Bentleys QLD advisory team led by Tracy Knight.
The new combined WCT Advisory team has grown three-fold, from five to 16 highly experienced insolvency, restructuring and valuation professionals, representing a strong increase in the firm’s specialised expertise.
“With Tracy and her team on board, we’re doubling down on our commitment to deliver serious results, so clients can count on deeper expertise and faster, sharper solutions, no matter how complex the challenge,” says Andrew Weatherley, WCT Advisory Partner.
Tracy says joining WCT Advisory means providing their clients with a more holistic approach. “We’re excited to dive deeper into their unique needs, providing insights and support to navigate even the most intricate issues with care and precision,” she says.
Andrew says ASIC’s latest statistics released on November 11, 2024, are “concerning”. “They reveal a 73.5% increase in insolvency appointments in October 2024 compared to the previous corresponding period, and a 19.9% increase from September 2024. As expected, these statistics reflect the engagements we are currently undertaking,” he says. “In our experience, the main catalyst for directors taking action at the moment is in response to the ATO’s efforts to recover outstanding liabilities – and that includes reporting to credit bodies and issuing Director Penalty Notices. We expect this to continue in accordance with the ATO’s collection policy and level of small business debt.”
The construction sector continues to be the most impacted, with 1627 insolvency appointments to 27 October 2024, compared to 1278 appointments in October 2023, and 907 appointments in October 2022. The accommodation and food services sector is the next highest impacted sector, with 1155 appointments to 27 October 2024, compared to 547 appointments in 2023, and 373 appointments in 2022.
Tracy adds, “We have also seen an increase in complex voluntary administration engagements, including an application to safeguard interests in significant improvements on leasehold property as well as navigating the interplay between the voluntary administration regime and family court matters.”
With offices in Brisbane and Adelaide, WCT Advisory Group is well placed to manage the increasing level of appointments in those states. In QLD, the number of appointments has grown from 480 in 2022, 753 in 2023, to 1210 to 27 October 2024. And in South Australia, the number of appointments has grown from 96 in 2022, 141 in 2023, to 280 to 27 October 2024.
“We believe our increased offering and new collaboration will allow our clients to benefit from a strengthened service lineup to help them navigate complex financial, legal, and strategic challenges with greater depth and expertise,” Andrew says.
ASIC data ex: https://download.asic.gov.au/media/mbaki1u0/asic-insolvency-statistics-series-1-and-series-2-published-11-november-2024.xlsx
