Explanatory MemorandumCirculated By Authority of the Attorney-General, the Honourable Robert Mcclelland MP
SECTION 1 - GENERAL OUTLINE
1. The objects of this Bill are:
- to provide a more streamlined process for fixing trustee remuneration and a more transparent process for reviewing that remuneration;
- to strengthen the penalties for some offences and ensure these are in line with the penalties for other similar offences;
- to remove the outdated concept of Bankruptcy Districts in order to provide more flexibility in personal insolvency administration;
- to increase the minimum debt for a creditor's petition to reflect changes in the economic environment;
- to increase the stay period that follows a declaration of intent to file a debtor's petition to allow debtors to better assess their options; and
- to increase the debt, income and asset tests thresholds for debt agreements to ensure the thresholds keep pace with increasing wages and the increasing availability of credit.
2. Schedule 1 contains amendments relating to remuneration of registered trustees administering bankrupt estates. These amendments will commence on a single date to be fixed by Proclamation.
3. Schedule 2 contains amendments relating to offences. These amendments will commence on a single date to be fixed by proclamation.
4. Schedule 3 contains amendments relating to the removal of Bankruptcy Districts. These amendments will commence the day after the Act receives Royal Assent.
5. Schedule 4 contains amendments relating to increasing the minimum debt for a creditor's petition, increasing the stay period that follows the filing of a declaration of intent to file a debtor's petition and increasing the debt, income and assets test for debt agreements. The amendments contained in Part 1 of Schedule 4 will commence 28 days after Royal Assent. The amendments contained in Part 2 of Schedule 4 will commence on a day to be fixed by Proclamation.
Financial Impact Statement
6. There are no financial implications for the Commonwealth arising from these amendments.