Australia and New Zealand operate under insolvency regimes that share several structural similarities, making cross-market comparisons particularly informative. Although Australia’s economy is substantially larger than New Zealand’s, recent liquidation trends indicate a strong degree of alignment between the two jurisdictions.
Analysis of liquidation data over the past five years shows that activity has followed a broadly similar trajectory in both countries. Periods of increasing insolvencies, temporary moderation, and subsequent rebounds have occurred at broadly the same time, suggesting that many of the underlying pressures affecting businesses are common across the two markets.
Both countries experienced a marked increase in liquidation activity through 2023 and 2024 as businesses adjusted to a more challenging post-pandemic operating environment. Over this period, liquidation appointments rose by 32% in Australia and 34% in New Zealand.
Since 2021, monthly liquidation volumes in both countries have nearly doubled. New Zealand has recorded a marginally stronger rate of growth over this period, with monthly liquidations increasing by 94%, compared with 93% in Australia.
The data also points to a consistent seasonal pattern in both jurisdictions. Liquidation volumes tend to decline in January and, to a lesser extent, in April, reflecting holiday-related reductions in business activity. Appointment levels then generally increase over the remainder of the year, with the highest volumes typically recorded in the third and fourth quarters. This pattern was particularly pronounced in 2025, when both countries reached record monthly liquidation totals in October. Australia recorded 988 liquidations, while New Zealand recorded 309, representing the highest monthly figures observed in either market over the period.
The close alignment between the two markets reinforces the extent to which broader economic conditions are influencing insolvency activity. Despite the significant difference in economic scale, the data indicates that businesses in Australia and New Zealand have responded in a notably similar manner to the challenges of the post-pandemic period.
