Bankruptcy (Estate Charges) Bill 1996
First Reading

1996

The Parliament of the

Commonwealth of Australia

HOUSE OF REPRESENTATIVES

Presented and read a first time

Bankruptcy (Estate Charges) Bill 1996

No. , 1996

(Attorney-General)

A Bill for an Act to impose charges in relation to certain matters under the Bankruptcy Act 1966

9613320--975/8.10.1996--(133/96) Cat. No. 96 5233 7 ISBN 0644 47811X

Contents

Part 1--Preliminary       

1       Short title

2       Commencement

3       Act to bind the Commonwealth Crown

4       Interpretation

Part 2--Interest charge       

5       Interest charge

Part 3--Realisations charge       

6       Realisations charge

7       Amount of charge payable

8       Working out the amount on which charge is payable

A Bill for an Act to impose charges in relation to certain matters under the Bankruptcy Act 1966

The Parliament of Australia enacts:

Part 1--Preliminary

1 Short title

        This Act may be cited as the Bankruptcy (Estate Charges) Act 1996.

2 Commencement

       (1) Subject to subsection (2), this Act commences on a day to be fixed by Proclamation.

       (2) If this Act does not commence within 6 months after the day on which this Act receives the Royal Assent, it commences on the first day after the end of that period.

3 Act to bind the Commonwealth Crown

        This Act binds the Crown in right of the Commonwealth. However, it does not bind the Crown in right of a State, of the Australian Capital Territory, of the Northern Territory or of Norfolk Island.

4 Interpretation

       (1) In this Act:

charge period means:

       (a) a period of 6 months commencing on 1 November 1996 or 1 November in a later year; or

       (b) a period of 6 months commencing on 1 May 1997 or 1 May in a later year.

       (2) Unless the contrary intention appears, other expressions used in this Act have the same meanings as in the Bankruptcy Act 1966.

Part 2--Interest charge

5 Interest charge

       (1) An amount of interest to which a trustee is entitled, in his or her personal capacity, under subsection 169(1B) of the Bankruptcy Act 1966 is payable to the Commonwealth as a charge.

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       (2) In subsection (1), the reference to subsection 169(1B) of the Bankruptcy Act 1966 includes a reference to that subsection as applied by the following provisions of that Act:

       (a) section 210 (which applies section 169 to a controlling trustee under Division 2 of Part X of that Act);

       (b) subsection 231(4) (which applies section 169 to a deed of assignment);

       (c) subsection 237(4) (which applies section 169 to a deed of arrangement);

       (d) subsection 243(3) (which applies section 169 to a composition);

       (e) subsection 248(1) (which applies section 169 to administration of estates under Part XI of that Act).

       (3) The charge is payable by the trustee.

       (4) The charge is payable within 21 days after the end of the charge period in which the interest was paid.

Part 3--Realisations charge

6 Realisations charge

       (1) A charge, calculated in accordance with sections 7 and 8, is imposed in respect of amounts received by a trustee (including the Official Trustee) who, during a charge period:

       (a) is the trustee of the estate of a bankrupt under the Bankruptcy Act 1966; or

       (b) is controlling trustee in relation to a debtor whose property has become subject to control under Division 2 of Part X of the Bankruptcy Act 1966; or

       (c) is the trustee of a deed of assignment or deed of arrangement executed, or a composition accepted, in relation to a debtor under Part X of the Bankruptcy Act 1966; or

       (d) is the trustee of the estate of a deceased person under Part XI of the Bankruptcy Act 1966.

       (2) The charge is payable by the trustee to the Commonwealth.

       (3) The charge is payable within 21 days after the end of the charge period.

7 Amount of charge payable

       (1) The amount of charge payable for a charge period is an amount equal to:

       (a) 8% of the amount on which charge is payable for the period; or

       (b) if a different percentage is prescribed by the regulations--the prescribed percentage of the amount on which charge is payable for the period.

       (2) The Governor-General may make regulations prescribing a rate for the purposes of paragraph (1)(b). The rate prescribed must not be higher than 15%.

8 Working out the amount on which charge is payable

       (1) The amount on which charge is payable for a charge period is the amount realised less the permitted deductions.

       (2) The amount realised is the total amount received by the trustee in the capacity referred to in subsection 6(1) during the charge period, but not including:

       (a) amounts paid to the trustee by creditors under an indemnity in respect of costs; or

       (b) amounts paid to the trustee under section 305 of the Bankruptcy Act 1966.

       (3) The permitted deductions are all amounts paid by the trustee in the capacity referred to in subsection 6(1) during the charge period that are:

       (a) amounts paid by the trustee in carrying on the business of the bankrupt, deceased person or debtor; or

       (b) amounts paid to secured creditors.

       (4) Once an amount has been taken into account for the purposes of subsection (2) as an amount received, the whole or part of the amount is not to be taken into account again as an amount received for the purposes of another application of that subsection.