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FairWork Mate Insights · Insolvency & redundancy

Australian business insolvency & redundancy risk

How many companies are failing, whether it's getting worse, and what it means for your entitlements if your employer becomes insolvent. Built on ASIC insolvency data and the Fair Entitlements Guarantee record.

Source: ASIC insolvency statistics + Fair Entitlements Guarantee (DEWR). Aggregate figures only.

1,104
companies entered administration (latest month)
-15.6%
insolvencies year-on-year
47/100
Employer Distress Index
1,938
directors currently banned

Company failures by year

Companies entering external administration each financial-year period, from ASIC's monthly series. The post-pandemic climb is the story every employer and worker should see.

4,412
4,943
4,511
6,446
9,227
13,451
14,649
2019202020212022202320242025

2026 year-to-date: 5,406 companies (to 2026-05). Peak full year was 2025 at 14,649.

If your employer becomes insolvent

The Fair Entitlements Guarantee (FEG) is the government safety net — it can cover unpaid wages, leave, notice and redundancy pay when an insolvent employer can't. There were 4,076 FEG claims last quarter (+13.8% year-on-year).

Work out your redundancy pay →

Worried about the warning signs? Directors who fail their duties can be banned — 1,938 are currently disqualified. If your entitlements are at risk, act early.

Should you accept redundancy? →

Employer in trouble? Ask our AI advisor — it's grounded on this insolvency and FEG data.

Ask the advisor →
How we compiled this. Company-failure counts are from ASIC's published insolvency statistics (Series 1, companies first entering external administration); FEG figures are from the Department of Employment and Workplace Relations. Recent months are provisional. Aggregate figures only — no companies named. General information, not legal advice.

FairWork Mate Insights — Australian business insolvency & redundancy risk, from open government data.