Young renters bearing the brunt of cost-of-living pressures will be a driving force of a more than 20 per cent rise in annual bankruptcies for at least the next two years, according to government forecasts.
The Australian Financial Security Authority expects personal insolvencies to jump 23 per cent to 12,250 in 2023-24, and a further 20 per cent in 2024-25 to 14,750.
The figures are still well below the long-term average of 23,100 a year, but mortgage stress and cash flow constraints are at their highest since the global financial crisis, ASFA said in its state of personal insolvency report, released on Friday.
The report found 54.2 per cent of people who entered personal insolvency in 2022-23 we…
Read the full article at: https://www.afr.com/policy/economy/young-renters-to-bear-the-brunt-of-personal-insolvency-surge-20231213-p5er77