Fewer Australians are spiralling into bankruptcy, with figures showing the lowest level of personal insolvency in almost 10 years.

Personal insolvency fell nine per cent in the June quarter, Australian Financial Security Authority (AFSA) statistics show.

“Bankruptcies are at their lowest annual level since 1995-96,” AFSA said in a statement.

The figures also showed bankruptcies fell 25 per cent in the June quarter of 2014 compared to the June quarter of 2013.

In the same period total personal insolvency activity fell in all states and territories except Western Australia and the Northern Territory.