Bankruptcy Amendment Act 1980

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Bankruptcy Amendment Act 1980

No. 12 of 1980

 

An Act to amend the Bankruptcy Act 1966, and for related purposes

[Assented to 8 April 1980]

BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c.

1. (1) This Act may be cited as the Bankruptcy Amendment Act 1980.

(2) The Bankruptcy Act 1966 is in this Act referred to as the Principal Act.

Commencement

2. (1) Sections 1 and 2, sub-section 3(1), sections 4, 5, 6, 8, 13, 14, 18, 19, 20, 23, 24, 25, 29, 30, 36, 37, 38, 39, 40, 41, 45 and 46, sub-sections 47(1) and (3), sections 48, 52, 53, 54, 56, 63, 66, 67, 68 and 71, sub-section 73(1), sections 79, 89, 91, 93, 94, 95, 97, 99, 105, 115, 117, 120, 121, 122, 123, 126, 128, 129, 131, 133, 135, 143, 149, 150, 153, 155, 156, 157, 158, 159, 160, 161, 162, 165, 166, 167, 168, 169, 170, 174 and 176 shall come into operation on the day on which this Act receives the Royal Assent.

(2) The remaining provisions of this Act shall come into operation on such date as is fixed by Proclamation.

Interpretation

3. (1) Section 5 of the Principal Act is amended—

(a) by inserting after the definition of “bankruptcy” in sub-section (1) the following definition:

“‘books’ includes any account, deed, writing or document and any other record of information however compiled, recorded or stored, whether in writing, on microfilm, by electronic process or otherwise;”; and

(b) by omitting “or that Act as amended as in force at any time” from the definition of “the repealed Act” in sub-section (1).

(2) Section 5 of the Principal Act is amended—

(a) by inserting after the definition of “affidavit” in sub-section (1) the following definition:

“‘approved bank’ means a trading bank as defined by sub-section 5 (1) of the Banking Act 1959 or another bank approved, by instrument in writing, for the purposes of this definition by the Treasurer or a person authorized by the Treasurer in writing to give approvals for the purposes of this definition;”;

(b) by adding “and a petition presented by joint debtors against themselves in pursuance of section 57” at the end of the definition of “debtor’s petition” in sub-section (1);

(c) by omitting from sub-section (1) the definition of “Deputy Registrar” and substituting the following definition:

“‘Deputy Registrar’ means a Deputy Registrar in Bankruptcy, and includes a person acting as a Deputy Registrar;”;

(d) by inserting after the definition of “goods” in sub-section (1) the following definition:

“‘Inspector-General’ means the Inspector-General in Bankruptcy, and includes a person acting as the Inspector-General;”;

(e) by omitting from sub-section (1) the definition of “magistrate” and…

Overview

The Bankruptcy Amendment Act 1980 was enacted to address gaps and issues within the Bankruptcy Act 1966. This Act, assented to on 8 April 1980, was passed by the Queen, the Senate, and the House of Representatives of the Commonwealth of Australia. It amends the Bankruptcy Act 1966 to update various definitions, roles, and responsibilities, such as renaming the "Official Receiver in Bankruptcy" to "Official Trustee in Bankruptcy" and clarifying the functions and powers of different officials within the bankruptcy process. Additionally, the Act introduces new provisions regarding the handling of maintenance agreements, the examination of bankrupts, the vesting of property, and the administration of bankrupt estates, among other changes. The objective of the Act is to ensure the efficient and fair administration of bankruptcy proceedings in Australia.

Scope and Application

The Bankruptcy Amendment Act 1980 amends the Bankruptcy Act 1966 to make several changes to the administration of bankruptcy in Australia. The Act applies to all individuals and entities within Australia, including the Commonwealth, states, and territories. It does not apply to proceedings under the repealed Bankruptcy Act 1924-1965. The Act extends to the regulation of conduct and transactions related to bankruptcy, including the powers and functions of the Official Trustee, Inspector-General, Registrars, and Deputy Registrars. It also regulates the conduct of sheriffs and other officers in relation to bankruptcy proceedings. Certain exclusions and exemptions apply, such as the continuation of certain provisions of the repealed Act for existing bankruptcies and the protection of certain official receivers and trustees from personal liability in certain circumstances. Subordinate instruments may be used to further define terms and establish regulations and rules for the administration of bankruptcy under the Act.

Key Provisions

  • The Bankruptcy Amendment Act 1980 makes several significant changes to the Bankruptcy Act 1966. Firstly, the Act amends the definition of "books" to include any account, deed, writing, or other record of information, however compiled, recorded, or stored. Secondly, the Act expands the scope of its application to include debtors regardless of age (Section 4). Thirdly, it introduces a Common Investment Fund, which the Official Trustee must open and maintain, and which will be used to hold moneys received by the Official Trustee and Official Receivers (Sections 14a and 20). Fourthly, the Act changes the process for appointing and terminating the roles of the Inspector-General, Registrars, Deputy Registrars, and Official Receivers, including the ability to make temporary appointments to these roles (Sections 8, 9, 11, 17, and 17a). Fifthly, it modifies the duties of these officers, including requiring them to act in aid of each other and to provide the Inspector-General with reports (Sections 19b and 20).
  • The Act imposes various obligations on the parties it governs. For instance, the Registrars, Official Trustee, and Official Receivers must open and maintain bank accounts as directed by the Inspector-General, and they must comply with any directions or orders given by the Inspector-General regarding their banking activities (Section 20). Additionally, the Official Trustee is required to maintain the Common Investment Fund and invest its moneys in approved securities (Section 20b). Furthermore, the Act mandates that the Registrars, Deputy Registrars, Official Receivers, and officers must act in aid of each other in all matters of bankruptcy (Section 19b).
  • The Act also establishes several offences and penalties for breaches. For instance, it is an offence to make a false or misleading statement in a proof of debt, with penalties of up to $1,000, six months imprisonment, or both (Section 263b). Similarly, it is an offence to fail to attend before the Court or a Registrar when summoned, with penalties of up to $1,000, six months imprisonment, or both (Section 264a). Additionally, it is an offence for a bankrupt to obtain credit without disclosing their bankruptcy status, with penalties of up to $500 or six months imprisonment, or both (Section 269). The Act also makes it an offence to leave Australia with intent to defeat creditors, with a maximum penalty of three years imprisonment (Section 272). Finally, the Act imposes various civil and criminal penalties for offences related to the recording and inspection of evidence and documents (Sections 264c and 264d).

Legal classification tags

Area of Law
Bankruptcy Law
Commercial Law
Instrument
Act
Concepts
Definitions & Interpretation
Commencement Provisions
Repeal & Amendment
Licensing & Registration
Enforcement Powers
Offence Provisions
Rights & Protections

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.