Bankruptcy Amendment Regulations 2000 (No. 1) 2000 No. 140
EXPLANATORY STATEMENT
Statutory Rules 2000 No. 140
Issued by authority of the Minister for Justice and Customs
Bankruptcy Act 1966
Bankruptcy Amendment Regulations 2000 (No. 1)
The Bankruptcy Act 1966 (the Act) is enacted in exercise of the Parliament's power under section 51 (xvii) of the Constitution to make laws in relation to bankruptcy.
Subsection 315(1) of the Act provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Paragraph 315(2)(j)(i) of the Act provides for Regulations to be made for the charging and payment of fees in relation to proceedings under the Act. Section 163 of the Act provides that the Official Trustee, a body corporate established under the Act to administer insolvent estates where no other trustee is appointed, is to be remunerated as prescribed by the regulations.
The Bankruptcy Regulations (the Regulations) prescribe fees payable to the Official Trustee by way of remuneration for services provided in relation to the administration of personal insolvencies. (regulation 16.07); and fees payable to the Insolvency and Trustee Service Australia for the taxation of bills of costs for the remuneration of registered trustees and other persons for work undertaken in relation to the administration of personal insolvencies (subregulation 16.12(2). Both these services are taxable supplies for the purposes of the A New Tax System (Goods and Services) Act 1999.
The purpose of the Bankruptcy Amendment Regulations (the Amendment Regulations) is to amend the Regulations to permit these fees to be increased by the amount applicable to GST for Government agencies, currently 8.4%. The 8.4% increase provided for in the Amendment Regulations takes account of the reductions in costs arising from removal of wholesale sales tax and other embedded savings and is consistent with Australian Competition and Consumer Commission (ACCC) Pricing Guidelines. It is also consistent with Commonwealth Agency Pricing Guidelines.
The Amendment Regulations specify that fees payable under regulation 16.07 or subregulation 16.12(2) of the Bankruptcy Regulations are to be increased by an amount equal to 8.4% of those fees to obtain the price of the taxable supply within the meaning of the A New Tax System (Goods and Services) Act 1999.
Details of the amendment are set out in the Attachment.
Attachment
Bankruptcy Amendment Regulations 2000 (No. 1)
Regulation 1 - Name of Regulations Regulation 1 names the amending regulations the Bankruptcy Amendment Regulations 2000 (No. 1).
Regulation 2 - Commencement
Regulation 2 specifies that the Bankruptcy Amendment Regulations will commence on 1 July 2000.
Regulation 3
Regulation 3 provides that Schedule 1 amends the Bankruptcy Regulations.
Schedule 1 Amendments
The following amendments to the Bankruptcy Regulations are made in Schedule 1:
Regulation 1.01
The amendment corrects a drafting omission, replacing the reference to the Bankruptcy Regulations with a reference to the Bankruptcy Regulations 1996.
Subregulation 16.07(9)
The amendment omits the cross-reference to regulation 8.12 of the Bankruptcy Regulations (Prescribed Remuneration of the Official Trustee) in the note following this subregulation because the note is being placed after subregulation 16.07(10).
After subregulation 16.07(9)
The amendment inserts a new subregulation (10) after subregulation 16.07(9) of the Bankruptcy Regulations. The new subregulation provides for an increase of the fees provided for in subregulations 16.07(1), (2), (3), (7) or (8) by an amount equal to 8.4%, this being the price of the taxable supply within the meaning of A New Tax System (Goods and Services) Act 1999.
A note is inserted after new subregulation (10) making a cross-reference to subregulation 8.12 (Prescribed Remuneration of the Official Trustee).
After subregulation 16.12(4)
The amendment inserts a new subregulation (5) after subregulation 16.12(4). The new subregulation provides for the increase of the fees mentioned in subregulation (2) by an amount equal to 8.4%, this being the price of the taxable supply within the meaning of A New Tax System (Goods and Services) Act 1999.
Overview
The Bankruptcy Amendment Regulations 2000 (No. 1) were enacted to address the need to update fees payable under the Bankruptcy Regulations to account for changes in the Goods and Services Tax (GST) framework. These regulations were introduced by the Commonwealth of Australia under the authority of the Bankruptcy Act 1966, specifically pursuant to the powers outlined in subsection 315(1) and paragraph 315(2)(j)(i) of the Act. The policy objective of these amendments was to ensure that the fees charged for services related to the administration of personal insolvencies, which are taxable supplies, accurately reflect the current GST rate of 8.4%. This adjustment was deemed necessary to align with the A New Tax System (Goods and Services) Act 1999, as well as the Australian Competition and Consumer Commission and Commonwealth Agency Pricing Guidelines.
Scope and Application
The Bankruptcy Amendment Regulations 2000 (No. 1) amend the Bankruptcy Regulations 1996, which are subsidiary legislation made under the Bankruptcy Act 1966. The Amendment Regulations primarily address the increase of fees payable to the Official Trustee and the Insolvency and Trustee Service Australia in relation to the administration of personal insolvencies, reflecting an 8.4% adjustment to account for the Goods and Services Tax (GST) applicable to government agencies. This amendment aligns with the A New Tax System (Goods and Services) Act 1999, and adheres to the Australian Competition and Consumer Commission (ACCC) and Commonwealth Agency Pricing Guidelines. These regulations apply to entities involved in the administration of personal insolvencies, including the Official Trustee and the Insolvency and Trustee Service Australia, and are relevant across the Commonwealth of Australia. The regulations do not specify exclusions or exemptions beyond the scope of personal insolvency administration and the associated fees. The amendments specified in the Amendment Regulations extend the application of the regulations by increasing the fees as per the outlined provisions, thus ensuring the fees are reflective of the current tax regime.
Key Provisions
The Bankruptcy Amendment Regulations 2000 (No. 1) (Amendment Regulations) primarily focus on amending the Bankruptcy Regulations 1996 (Bankruptcy Regulations) to increase the fees payable to the Official Trustee and the Insolvency and Trustee Service Australia (ITSA) by an amount equal to 8.4%, which represents the Goods and Services Tax (GST) rate applicable to government agencies (regulation 1.01 and schedule 1). The Amendment Regulations specifically address the fees outlined in subregulations 16.07(1), (2), (3), (7), (8) and subregulation 16.12(2) of the Bankruptcy Regulations (schedule 1). These fees are associated with the remuneration of the Official Trustee and the taxation of bills of costs for the remuneration of registered trustees and other persons involved in the administration of personal insolvencies, which are considered taxable supplies under the A New Tax System (Goods and Services) Act 1999.
The Amendment Regulations impose obligations on the parties and entities governed by the Bankruptcy Act 1966. The Official Trustee, who is responsible for administering insolvent estates when no other trustee is appointed, and the ITSA, which handles the taxation of bills of costs for registered trustees and other persons involved in personal insolvency administration, must comply with the increased fees as specified in the Amendment Regulations. This adjustment is necessary to account for the GST rate applicable to government agencies and aligns with the Australian Competition and Consumer Commission (ACCC) Pricing Guidelines and Commonwealth Agency Pricing Guidelines.
Failure to comply with the increased fees as outlined in the Amendment Regulations may result in legal consequences for the parties involved. While the explanatory statement does not explicitly mention any specific offences, penalties, or consequences for non-compliance, it is essential to note that any breach of the Bankruptcy Regulations may lead to legal action. Additionally, the regulations governing the administration of personal insolvencies under the Bankruptcy Act 1966 may include provisions for penalties and consequences for non-compliance with the Act's requirements. The exact nature and severity of these penalties would depend on the specific provisions of the Bankruptcy Act 1966 and any related legislation.