According to the latest statistics from ASIC, the construction industry has faced sustained and accelerating financial distress over the past four years. Since the financial year 2021–22, the number of insolvency appointments has almost tripled, with nearly 4,900 cases in FY24–25 alone. And, the 744 cases already recorded for FY25–26 indicate the construction industry continues to suffer severe financial distress. ASIC’s statistics also show that creditors’ voluntary liquidations dominate over other approaches, which highlights that many construction firms are collapsing late in the financial distress cycle.
Insolvent trading ranked as the leading form of misconduct in the construction sector, according to the…