Bankruptcy Legislation Amendment Act 2010
No. 106, 2010
An Act to amend the Bankruptcy Act 1966, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Remuneration of trustees of estates of bankrupts
Bankruptcy Act 1966
Schedule 2—Offence provisions etc.
Bankruptcy Act 1966
Schedule 3—Removal of Bankruptcy Districts
Bankruptcy Act 1966
Schedule 4—Other amendments
Part 1—Amendments commencing 28 days after Royal Assent
Bankruptcy Act 1966
Part 2—Amendments commencing on a day to be fixed by Proclamation
Bankruptcy Act 1966
Bankruptcy Legislation Amendment Act 2010
No. 106, 2010
An Act to amend the Bankruptcy Act 1966, and for related purposes
[Assented to 14 July 2010]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Bankruptcy Legislation Amendment Act 2010.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provision(s) | Commencement | Date/Details |
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day this Act receives the Royal Assent. | 14 July 2010 |
2. Schedules 1 and 2 | A single day to be fixed by Proclamation. However, if any of the provision(s) do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period. | 1 December 2010 (see F2010L03074) |
3. Schedule 3 | The day after this Act receives the Royal Assent. | 15 July 2010 |
4. Schedule 4, Part 1 | The 28th day after this Act receives the Royal Assent. | 11 August 2010 |
5. Schedule 4, Part 2 | A single day to be fixed by Proclamation. However, if any of the provision(s) do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period. | 1 December 2010 (see F2010L03074) |
Note: This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.
(2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.
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—Remuneration of trustees of estates of bankrupts
Bankruptcy Act 1966
1 Subsections 64U(2) to (4)
Repeal the subsections.
2 Subsection 64U(5)
Omit “A statement to be made by the…
Overview
The Bankruptcy Legislation Amendment Act 2010 (Cth) was enacted to amend the Bankruptcy Act 1966 (Cth) and address several issues within the Australian bankruptcy system. This Act was passed by the Parliament of Australia and assented to on 14 July 2010. One of the primary policy objectives of this Act is to enhance the transparency and fairness in the remuneration process for trustees managing bankrupt estates, ensuring that creditors have a greater say in determining trustee fees. Additionally, the Act aims to strengthen the enforcement mechanisms and penalties associated with bankruptcy-related offences, promoting compliance and accountability within the system.
The Act consists of four schedules, each addressing different aspects of the Bankruptcy Act 1966. Schedule 1 focuses on the remuneration of trustees, introducing provisions that require trustees to clearly state their proposed remuneration and allowing creditors to propose and vote on remuneration motions. It also establishes a statutory minimum remuneration for trustees and provides a mechanism for the Inspector-General to review and decide on trustee remuneration when necessary.
Schedule 2 expands the powers of the Inspector-General to include making inquiries and investigations into potential offences under the Bankruptcy Act, including the power to require individuals to provide information relevant to such inquiries. This schedule also introduces new offences and penalties for various compliance failures by trustees and other relevant parties, thereby reinforcing the enforcement regime within the bankruptcy system.
Schedule 3 addresses the removal of bankruptcy districts, simplifying the administration of bankruptcy by eliminating the need for district-specific provisions and allowing Official Receivers to exercise broader powers and functions across different matters.
Schedule 4 includes miscellaneous amendments, such as increasing certain monetary thresholds and modifying the stay period during which creditors cannot enforce debts against a bankrupt. These changes are aimed at refining the operational aspects of the bankruptcy process to ensure it remains effective and responsive to the needs of all stakeholders involved.
Scope and Application
The Bankruptcy Legislation Amendment Act 2010 applies to individuals and entities involved in the administration of bankruptcy estates in Australia, including trustees, creditors, and the Official Receiver. The Act amends the Bankruptcy Act 1966, which is a Commonwealth statute, thereby extending its application across the entire country. The Act does not explicitly state any exclusions or exemptions but introduces changes that affect the processes and regulations governing bankruptcy proceedings. Certain provisions of the Act are scheduled to commence on specific dates, with some becoming effective 28 days after Royal Assent and others on a date to be fixed by proclamation. The Act also allows for further regulation and modification through subordinate instruments, such as regulations, which can detail specific procedural and penalty-related aspects of the amendments.
Key Provisions
- The Bankruptcy Legislation Amendment Act 2010 amends the Bankruptcy Act 1966 in several key areas. Firstly, it revises the remuneration process for trustees of bankrupts' estates, requiring trustees to state their proposed remuneration basis and allowing creditors to propose motions on the remuneration (Schedule 1, items 1-9). The Act also introduces a statutory minimum remuneration for trustees and establishes a process for reviewing trustees' remuneration by the Inspector-General (Schedule 1, items 10-13). It further mandates the giving of notices to bankrupts and creditors regarding payments for services provided by third parties and allows for reviews of such payments by the Inspector-General (Schedule 1, items 14-17).
- The Act imposes obligations on trustees to provide timely notices and returns to the Inspector-General and the Official Receiver, as well as to comply with various statutory deadlines for reporting events such as bankruptcies, annulments, and deaths of trustees (Schedules 1-4, various items). Trustees and other relevant parties are required to adhere to strict timelines for providing notifications and returns, with penalties for non-compliance, many of which are strict liability offences (Schedules 1-4, various items).
- For breaches of the amended provisions, the Act specifies penalties in the form of penalty units, with some provisions carrying higher penalties (Schedules 1-4, various items). Non-compliance with certain notification and reporting requirements can result in penalties ranging from 1 to 5 penalty units, while failure to comply with specific strict liability provisions can also incur penalties of 5 penalty units (Schedules 1-4, various items). Additionally, the Act introduces the option of paying infringement notices as an alternative to prosecution for certain offences (Schedule 2, item 83).
- Area of Law
- Insolvency Law
- Instrument
- Amending Act
- Concepts
- Commencement Provisions
- Offence Provisions
- Enforcement Powers
- Civil Penalty Provisions
- Regulatory Standards
- Reporting & Disclosure Obligations
