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- to remove the outdated concept of Bankruptcy Districts in order to provide more flexibility in personal insolvency administration;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.
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).