2021 Risk Report

We are pleased to release our 2021 Risk report.

Drawing on data insights using the AICM’s deep network of credit industry professionals and thought-leaders, this report gives a clear picture of both personal and corporate insolvencies in the context of the government’s response to the pandemic.

To help you manage the associated change, included in the report are key tips for managing risk and a perspective on where risk is likely to escalate in the coming months.

This report is produced on an annual basis to support credit professionals and the broader industry understand the diverse factors that influence credit risk.

Significant changes to Australia's insolvency landscape commenced on 1 January 2021 and include:
 A new Debt Restructuring Process for small businesses;
 Temporary restructuring relief; and
 A new Simplified Liquidation Process for small businesses.

These changes are intended to be more suitable than current processes for small businesses (with liabilities <$1 million) by reducing complexity, time and costs associated with the current processes to achieve better outcomes for creditors and employees.

AICM has been actively representing members in the expedited government consultation process enabling us to provide you with what you need to know about the reforms.

Our lobbying for reform of the unfair preference claim regime has achieved a significant win for credit providers, frustrated by unfair preference claims.
The simplified liquidation process restricts claims to:
 Within 3 months of Liquidation; and
 Greater than > $30,000 


What credit professionals need to know

Leveraging our extensive network and submissions to government we have prepared a ready reckoner for credit professionals. 

Read the article

ARITA have prepared a guide for credit providers explaining the operation of the simplified liquidation and small business restructuring process

Read summary

Additional Reading from our Partners

Results Legal - summary of reforms

Turkslegal - FAQ's

VIncents  - Features of reforms



 How to access extensions to temporary restructuring relief
 Information about simplified liquidation
 Information about entering Restructuring and the Restructuring Plan
 Information about changes to the application and ongoing management requirements to be registered as a liquidator

AICM's submissions on the draft legislation and regulations

Representing members with the government is a key pillar of how the AICM supports its members. In addition to documenting on behalf of members, we engage directly with the government, industry bodies, organisations and individuals such as:

 AICM Members, especially CCE's
 The Australian Restructuring Insolvency and Turnaround Association (ARITA)
 The Australian Chamber of Commerce and Industry (ACCI)
 The Australian Finance Industry Association (AFIA)
 The Australian Collectors and Debt Buyers Association
 AICM National and Divisional Partners Click here to view
 Credit, Insolvency and Legal Professionals
 University academics


Submission - 12 October

Submission - 24 November


Government documents

Fact sheet

Final bill and other documents



Our inaugural AICM Insolvency Risk report was released to members in May 2020.  

Produced amid the most rapidly changing economic conditions imaginable, this report provides a valuable long term resource for the interpretation of emerging trends along with insights central to determining how these may impact your credit operation.

The report aims to provide a comprehensive and detailed overview of the underlying trends affecting credit and insolvency risk in Australia in 2020. 

Drawing on the AICM’s extensive network of regulators, specialist industry bodies and key credit industry stakeholders, this report summarises data from relevant public and private sector sources, complemented by insights and deep knowledge from industry experts to provide an unsurpassed analysis in respect of:
-  Historic insolvency trends
-  Trends in the lead indicators of insolvency
-  What these trends mean for you

View Report