Bankruptcy Regulations (Amendment) 1996 No. 278
EXPLANATORY STATEMENT
Statutory Rules 1996 No. 278
(Issued by authority of the Attorney-General and Minister for Justice, the Hon Daryl Williams AM QC MP)
Bankruptcy Act 1966
Bankruptcy Regulations (Amendment)
The Bankruptcy Regulations (Amendment) amends the Bankruptcy Regulations to prescribe times for the filing of accounts by trustees with the Official Receiver for the purposes of section 175 of the Act. The regulations also prescribe fees for the making of applications by individuals to become registered as trustees under the Act, and applications for renewal of registration and for changes of conditions to registration. These matters are provided for in regulations 6 and 9. Regulations 3, 4, 5, 7 and 8 correct minor drafting errors in the Bankruptcy Regulations.
The following is a description of the Bankruptcy Regulations (Amendment).
Regulation 1 - Commencement
Regulation 1.1 provides for the amendment to commence on 16 December 1996, the same day as the commencement of the Bankruptcy Regulations themselves,
Regulation 2 - Amendment The regulations amends the Bankruptcy Regulations.
This regulation corrects a drafting error in subregulation 6.03, whereby certain a paragraphs are lettered as subparagraphs, instead of paragraphs.
Regulation 4 - Regulation 6.08 (Evidentiary certificate by trustee - subsection 116(8) of the Act)
This regulation makes subregulation 6.08(4) of the Bankruptcy Regulations consistent in terminology with other provisions in those regulations.
Regulation 5 - Regulation 8.10 (Bill of costs)
This regulation substitutes a specific reference to 'the purposes of subregulation (1)' in regulation 8.10 for the term 'those purposes' currently employed in the provision.
Regulation 6 - New Division 5A of Part 8
Section 175 of the Act requires trustees to file accounts of receipts and payments in trusteeships under their administration with the Official Receiver at prescribed times. Regulation 6 inserts a new regulation 8.14A in to the Bankruptcy Regulations which prescribes times for the purposes of section 175. Those times are the last day of the period of 6 months from the day when the trustee began to act as trustee. and subsequent 6 month periods, and also 28 days after the trustee ceases, for any reason, to be the trustee of a particular administration.
Regulation 7 - Regulation 12.01 (Statement where moneys paid into Consolidated Revenue Fund)
Regulation 12.01 of the Bankruptcy Regulations requires trustees to prepare a statement relating to payments made by them into the Consolidated Revenue Fund pursuant to section 254 of the Act. The reference in subregulation 12.01(3) to trustees as 'he or she' is inapt in the case of the Official Trustee which is a corporation. Regulation 7 replaces the reference to 'he or she' with a reference to 'the person'.
Regulation 8 - Regulation 13.04 (Application for certain information not to be on the Index)
Regulation 8 omits redundant words from paragraphs 13.04(1)(b) and (c) of the Bankruptcy Regulations.
Regulation 9 - New regulation 16.14AA - Prescribed fees under Division 1 of Part VIII of the Act
Part VIII of the Act provides, among other things a system for the registration of individuals as trustees in bankruptcy. Section 154A requires a person applying to the Inspector-General in Bankruptcy for registration as a trustee to pay a fee. Section 155C provides for a person to pay a registration fee. Section 155D provides for a person to pay a fee on extension of the term of their registration. Section 155E requires a trustee whose registration is conditional and who is making an application for those conditions to be varied or removed to pay a fee. Regulation 9 inserts a new regulation 16.14AA which prescribes fees of $1,500 for registration applications, $1,000 for registration and extension of registration and $500 for applications to vary conditions relating to registration.
Overview
The Bankruptcy Regulations (Amendment) 1996 No. 278, issued under the authority of the Attorney-General and Minister for Justice, the Hon Daryl Williams AM QC MP, was enacted to refine and correct various aspects of the Bankruptcy Regulations, thereby enhancing the administration of the Bankruptcy Act 1966. This amendment aimed to address minor drafting errors and ensure consistency in terminology across the regulations. By prescribing specific times for trustees to file accounts with the Official Receiver, and setting fees for various trustee-related applications, the amendment sought to streamline the processes involved in the administration of bankruptcy, ensuring that these procedures are conducted efficiently and in accordance with the legislative requirements.
The regulations introduced under this amendment, such as the introduction of a new regulation 8.14A for the prescribed times of filing accounts and new fees under regulation 16.14AA, are designed to support the policy objective of maintaining transparency and accountability in the management of bankruptcy proceedings. Additionally, the correction of minor drafting errors in existing regulations ensures that the legal framework operates as intended, without ambiguity or potential misinterpretation. Overall, the Bankruptcy Regulations (Amendment) 1996 No. 278 plays a crucial role in refining the operational aspects of bankruptcy administration under the Bankruptcy Act 1966.
Scope and Application
The Bankruptcy Regulations (Amendment) 1996 No. 278 applies to trustees under the Bankruptcy Act 1966, requiring them to file accounts of receipts and payments with the Official Receiver at prescribed times. This regulation also applies to individuals seeking to register as trustees or make changes to their registration, imposing fees for these applications. The amendment ensures that trustees are required to file their accounts at specific intervals: the last day of the period of six months from the day when the trustee began to act as trustee and in subsequent six-month periods, and also 28 days after the trustee ceases, for any reason, to be the trustee of a particular administration. It also sets fees for registration, renewal of registration, and changes to registration conditions. The amendment corrects minor drafting errors and ensures consistency in terminology throughout the regulations. The amendment applies nationally across Australia, governed under Commonwealth law, and does not explicitly exclude any specific entities or conduct from its purview. Subordinate instruments may further extend or restrict the application of these regulations as deemed necessary.
Key Provisions
The Bankruptcy Regulations (Amendment) 1996 No. 278 primarily serves to correct and update the Bankruptcy Regulations in line with the requirements and provisions set out in the Bankruptcy Act 1966. Regulation 1 (1.1) establishes that the amendment will take effect on 16 December 1996, aligning with the commencement date of the Bankruptcy Regulations themselves. Regulation 2 addresses the amendment of existing regulations, ensuring consistency and correcting minor drafting errors that were identified. For instance, Regulation 4 corrects a typographical error in subregulation 6.03, ensuring that certain paragraphs are properly numbered. Similarly, Regulation 5 updates the terminology in subregulation 8.10 to match that used in other relevant provisions.
The obligations imposed by these regulations are primarily administrative in nature. Trustees of bankruptcies are required to file accounts of their receipts and payments with the Official Receiver at specific intervals. Regulation 6 introduces a new regulation 8.14A which mandates that these accounts must be filed on the last day of the sixth month from the date the trustee began acting as trustee and at subsequent six-month intervals, as well as within 28 days of ceasing to be the trustee for any reason. Additionally, Regulation 7 ensures that references to trustees in subregulation 12.01 are gender-neutral, updating the language to refer to "the person" instead of "he or she" to include corporate trustees like the Official Trustee.
There are no specific offences, penalties, or civil/criminal consequences outlined in the explanatory statement for the failure to comply with these regulations. However, non-compliance with the obligations set forth in the Bankruptcy Act 1966 and its regulations could potentially result in legal consequences, including the possibility of the trustee being removed from office or facing disciplinary action. The precise penalties for such breaches would be governed by the general provisions of the Act and any related case law or statutory instruments.