Bankruptcy (Estate Charges) Amendment Act 2001

Administered by Department of the Treasury

Legislation au C2004A00934 In force Act

Legislation content

Bankruptcy (Estate Charges) Amendment Act 2001

Act No. 158 of 2001 as amended

This compilation was prepared on 24 July 2002

[This Act was amended by Act No. 61 of 2002]

Amendment from Act No. 61 of 2002

[Schedule 1 (item 11) amended section 2
Schedule 1 (item 11) commenced on 3 July 2002]

Prepared by the Office of Legislative Drafting,
Attorney-General’s Department, Canberra

 

 

 

Contents

1 Short title...................................

2 Commencement...............................

3 Schedule(s)..................................

Schedule 1—Amendments and transitional provisions

Part 1—Amendments

Bankruptcy (Estate Charges) Act 1997

Part 2—Transitional provisions

 

An Act to amend the Bankruptcy (Estate Charges) Act 1997, and for related purposes

[Assented to 1 October 2001]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Bankruptcy (Estate Charges) Amendment Act 2001.

2  Commencement

  This Act commences immediately after the commencement of section 1 of the Bankruptcy (Estate Charges) Amendment Act 2002.

3  Schedule(s)

  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.


Schedule 1—Amendments and transitional provisions

Part 1—Amendments

Bankruptcy (Estate Charges) Act 1997

1  Subsection 4(1) (definition of charge period)

Repeal the definition, substitute:

charge period means a period of 6 months commencing on 1 January or 1 July.

2  After subsection 5(1)

Insert:

 (1A) No charge is payable by a trustee in respect of an account for a charge period if the amount of that charge would be less than $10, or a higher amount prescribed by the regulations.

3  Subsection 5(4)

Omit “21 days”, substitute “35 days”.

4  After paragraph 6(1)(a)

Insert:

 (aa) is the trustee of a composition or scheme of arrangement under Division 6 of Part IV of the Bankruptcy Act 1966; or

5  After subsection 6(1)

Insert:

 (1A) No charge is payable by a trustee for a charge period in respect of a particular estate, deed, composition or debtor (as the case requires) if the amount of that charge would be less than $10, or a higher amount prescribed by the regulations.

6  Subsection 6(3)

Omit “21 days”, substitute “35 days”.

7  After section 6

Insert:

6A  Charge not payable on estate surplus

 (1) If:

 (a) the trustee receives an amount in respect of a bankrupt’s estate; and

 (b) as a result of receiving the amount, the trustee becomes able to pay off all the bankrupt’s debts;

then the following amounts are not taken into account in determining the amount on which charge is payable:

 (c) any excess of the received amount over the amount needed to pay off all the bankrupt’s debts;

 (d) any amount later received by the trustee in respect of the estate.

 (2) In this section:

bankrupt’s debts has the same meaning as in subsection 153A(6) of the Bankruptcy Act 1966.

8  After section 7

Insert:

7A  Certain amounts treated as being received by trustee

  For the purposes of this Part, an amount is treated as received by the trustee if it is applied or dealt with on behalf of the trustee, or in accordance with the trustee’s directions.

9  At the end of the Act

Add:

Part 4—Miscellaneous

 

9  Regulations

  The Governor‑General may make regulations prescribing matters:

 (a) required or permitted by this Act to be prescribed; or

 (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.


Part 2—Transitional provisions

10  Definitions

In this Part:

commencing time means the time when this Act commences.

Estate Charges Act means the Bankruptcy (Estate Charges) Act 1997.

11  Item 1

(1) If this Act commences during an old charge period ending on 30 April, then:

 (a) that charge period is extended until 30 June; and

 (b) the amendment made by item 1 applies from 1 July following that 30 June.

(2) If this Act commences during an old charge period ending on 31 October, then:

 (a) that charge period is extended until 31 December; and

 (b) the amendment made by item 1 applies from 1 January following that 31 December.

(3) In this item:

old charge period means a charge period within the meaning of the Estate Charges Act (ignoring the amendment made by item 1).

12  Items 2 and 5

The amendments made by items 2 and 5 apply to charge periods that end after the commencing time.

13  Items 3 and 6

The amendments made by items 3 and 6 apply to charge periods that end after the commencing time.

14  Item 4

The amendment made by item 4 applies to compositions and schemes of arrangement that are accepted by creditors after the commencing time.

15  Item 7

The amendment made by item 7 applies to amounts received after the commencing time.

16  Item 8

The amendment made by item 8 applies to amounts that are applied or dealt with after the commencing time.

 

Overview

The Bankruptcy (Estate Charges) Amendment Act 2001, Act No. 158 of 2001, was enacted to amend the Bankruptcy (Estate Charges) Act 1997, addressing certain issues related to the charges payable by trustees in bankruptcy cases. This legislation was introduced by the Parliament of Australia to streamline and modernise the financial obligations of trustees, ensuring that the charge periods are more clearly defined and that smaller charges are not disproportionately burdensome. The primary objective of the Act is to ensure that the financial administration of bankrupt estates is conducted efficiently, with a focus on reducing administrative burdens where the financial impact is minimal. This Act allows for the regulation of certain thresholds and periods, providing flexibility in the administration of estate charges. The Act also includes transitional provisions to ensure a smooth implementation of the amendments, addressing scenarios where the commencement of the Act might coincide with existing charge periods. This careful consideration of timing aims to prevent any disruption in the administration of bankruptcy estates and ensures that the new provisions apply appropriately from their intended commencement date. By doing so, the Act seeks to uphold the integrity and efficiency of the bankruptcy process in Australia.

Scope and Application

The Bankruptcy (Estate Charges) Amendment Act 2001 amends the Bankruptcy (Estate Charges) Act 1997, applying to trustees of bankrupt estates, including individuals and entities appointed under the Bankruptcy Act 1966. The Act operates at the Commonwealth level, impacting those involved in bankruptcy proceedings across Australia. It modifies the definition of the charge period, mandates minimum thresholds for payable charges, alters the timeframe for charge payments, and introduces provisions for estates where debts are fully settled. Additionally, the Act introduces mechanisms for certain amounts to be considered as received by trustees and provides for the creation of regulations to further define and implement these provisions. Exclusions and exemptions are largely defined through the regulatory framework established under the Act, allowing for flexibility in application. The Act's transitional provisions ensure a smooth implementation by extending existing charge periods and applying amendments to periods and transactions occurring post-commencement.

Key Provisions

The Bankruptcy (Estate Charges) Amendment Act 2001 (C2004A00934) amends the Bankruptcy (Estate Charges) Act 1997. Key amendments include changes to the definition of a charge period, the introduction of a minimum charge threshold, and adjustments to notification periods for trustees. Section 1 of the Act redefines the charge period to be a six-month period beginning on January 1 or July 1. Section 4 modifies the charge threshold, stating that no charge is payable if the amount would be less than $10, or a higher amount prescribed by regulations. The Act extends the notification period for trustees from 21 to 35 days, as seen in sections 5(4) and 6(3). Furthermore, the Act introduces new provisions for cases where trustees become able to pay off all the bankrupt's debts and for the treatment of certain amounts as being received by trustees, as detailed in sections 6A and 7A, respectively. The Act imposes several obligations on trustees and other parties involved in the administration of bankrupt estates. Trustees are required to ensure that charges are calculated accurately, and they must notify the relevant authorities within the specified timeframes. For example, under the amended sections, trustees must notify the relevant parties within 35 days of a chargeable event. Additionally, trustees must comply with the new rules regarding the minimum charge threshold and the treatment of certain received amounts. The Act also requires the Governor-General to make regulations that prescribe matters necessary for the effective implementation of the Act, as stated in section 9. Breach of the provisions in the Bankruptcy (Estate Charges) Amendment Act 2001 may result in civil or criminal penalties, although the specific consequences are not detailed in the text provided. Generally, failure to comply with the Act's requirements, such as not paying charges when due or not notifying authorities within the prescribed timeframe, could lead to legal action. The penalties for such breaches would depend on the specific nature of the breach and would likely be outlined in the regulations made under section 9 of the Act. Given the legislative context, penalties could range from fines to more severe consequences for willful or repeated non-compliance.

Legal classification tags

Area of Law
Insolvency Law
Instrument
Act
Concepts
Commencement Provisions
Regulatory Standards
Transitional Provisions

Interactions

Authorises

All Versions

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.