Fingering bankruptcy hotspots by suburb

New figures from the Insolvency and Trustee Service show exactly which postcodes in each state are faring worst for bankruptcies.

SmartCompany

South-eastern Victoria and the Mount Druitt area of Sydney have emerged as some of the country’s worst areas for bankruptcies, according to the latest data released by the federal Insolvency and Trustee Service.

While a range of data shows Australians are keen on paying down debt and unemployment remains low, experts say local wealth is tied closely with property, and insolvencies may be affected as values rise and fall.

"For most Australians, the wealth is tied up in the home,” Dun & Bradstreet marketing director Damian Karmelich told SmartCompany.

"The recent 18-24 months of deleveraging is definitely going to help consumers when it comes to their debt.”

The figures show that in NSW, Campbelltown, Mount Druitt and Prestons were the most affected by insolvency actions, while in the ACT, Charnwood was the most affected.

In Victoria, Cranbourne was hit the hardest with 140 actions, while in Queensland, the Glenvale area of Toowoomba was most affected.

Salisbury North was the worst area in South Australia, while Alice Springs was the most affected in the Northern Territory. Mandurah took the top spot in Western Australia, while western Launceston was hit most in Tasmania.

Karmelich says the low unemployment rate has been able to keep many Australians out of trouble for a while. However, he also says that while many home owners are calling for lower interest rates, many should be thankful the Reserve Bank is keeping rates where they are.

"People frame those rate changes as ‘I’ll save this much money per week’. But when the Reserve Bank drops interest rates, they’re concerned about the underlying strength of the economy.”

"This deleveraging of debt that people have been doing is great… but it’s not going to help the economy, particularly on the spending side of things.”

The top areas for personal bankruptcy actions organised by state:

NSW

SuburbPostcodeNumber of insolvency actions
Campbelltown2560
227
Mt Druitt2770
202
Liverpool2170
191
Gosford2250
162
Halloran2259
152
Magenta2261
139
Blacktown2148
124
Wagga Wagga2650
120
Penrith2750
116
Westmead2145
115

Victoria

SuburbPostcodeNumber of insolvency actions
Cranbourne
3977
140
Hoppers Crossing
3029
123
Frankston
3199
105
Werribee
3030
93
Narre Warren
3805
88
Pakenham
3810
85
Mildura
3500
76
Craigieburn
3064
75
Grovedale
3216
70
Melton
3337
70

Queensland

SuburbPostcodeNumber of insolvency actions
Toowoomba
4350
195
Bundaberg
4670
184
Nerang
4211
181
Southport
4215
167
Booral
4655
155
Coomera
4209
149
Alberton
4207
147
Mackay
4740
142
Donnybrook
4510
138
Surfers Paradise
4217
137

ACT

SuburbPostcodeNumber of insolvency actions
Charnwood2615
14
Gordon2906
14
Chisholm2905
12
Casey2913
8
Forde2914
8
Ainslie2602
7
Fisher2611
5
Belconnen2617
5
Gungahlin2912
5
Oxley2903
4

Northern Territory

SuburbPostcodeNumber of insolvency actions
Alice Springs
870
27
Shoal Bay
830
26
Coconut Grove
810
22
Cullen Bay
820
19
Anula
812
13
Katherine
850
12
Acacia Hills
822
10
Mitchell
832
9
Darwin
800
4
Barrow Creek
872
3

Western Australia

SuburbPostcodeNumber of insolvency actions
Mandurah
6210
130
Merriwa
6030
70
Armadale
6112
62
Ashby
6065
58
Gosnells
6110
55
Balga
6061
53
Shoalwater
6169
52
Bunbury
6230
50
Bertram
6167
48
Cooloongup
6168
46

Tasmania

SuburbPostcodeNumber of insolvency actions
Launceston
7250
114
Granton
7030
77
Glenorchy
7010
54
Mowbray
7248
53
Devonport
7310
53
Burnie
7320
46
Bellerive
7018
39
Claremont
7011
38
Derwent Park
7009
32
Gawler
7315
31

About the data:

This data has been compiled by the Insolvency and Trustee Service, which describes this as "experimental data”.

SmartCompany has combined three separate metrics in order to calculate these lists – bankruptcies, debt agreements and personal insolvency agreements. A detailed breakdown of how each action works is available here on the ITSA website here.

This article first appeared on SmartCompany on April 11. Republished with permission.