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A Bill for an Act to amend the Bankruptcy Act 1966, and for related purposes
Administered by: Attorney-General's
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Registered 19 Oct 2017
Introduced Senate 19 Oct 2017
Table of contents.

2016‑2017

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

 

Presented and read a first time

 

 

 

 

Bankruptcy Amendment (Enterprise Incentives) Bill 2017

 

No.      , 2017

 

(Attorney‑General)

 

 

 

A Bill for an Act to amend the Bankruptcy Act 1966, and for related purposes

  

  


Contents

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

2............ Commencement................................................................................... 1

3............ Schedules............................................................................................ 2

Schedule 1—Bankruptcy Act 1966                                                                             3

Part 1—Amendments                                                                                                    3

Bankruptcy Act 1966                                                                                                  3

Part 2—Application and transitional provisions                                              9

 


A Bill for an Act to amend the Bankruptcy Act 1966, and for related purposes

The Parliament of Australia enacts:

1  Short title

                   This Act is the Bankruptcy Amendment (Enterprise Incentives) Act 2017.

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

Provisions

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.

 

2.  Schedule 1

The day after the end of the period of 6 months beginning on the day this Act receives the Royal Assent.

 

Note:          This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

             (2)  Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

                   Legislation 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 1Bankruptcy Act 1966

Part 1Amendments

Bankruptcy Act 1966

1  At the end of subsection 59(1)

Add:

             ; and (f)  any liability of the person to pay a contribution to the trustee in the earlier bankruptcy in respect of a contribution assessment period under Division 4B of Part VI ceases (and the contribution assessment period comes to an end).

2  At the end of section 59

Add:

             (7)  Paragraph (1)(f):

                     (a)  does not affect a liability under Division 4B of Part VI that is attributable to the contribution assessment period brought to an end under that paragraph (and the trustee in the later bankruptcy may exercise any power that would otherwise have been exercisable by the trustee in the earlier bankruptcy under that Division in relation to any such liability had the contribution assessment period not ceased); and

                     (b)  does not limit any ability to establish a new contribution assessment period in relation to the later bankruptcy.

3  Section 80 (heading)

Repeal the heading, substitute:

80  Notification of change in contact details

4  Subsection 80(1)

Repeal the subsection, substitute:

             (1)  If during the prescribed period a change occurs in:

                     (a)  the bankrupt’s name; or

                     (b)  the address of the bankrupt’s principal place of residence; or

                     (c)  any telephone number usually used by the bankrupt for telephone calls;

the bankrupt must, within 10 business days after the change occurs, tell the trustee, in a manner determined or approved by the trustee, of the change.

Penalty:  Imprisonment for 6 months.

5  At the end of section 80

Add:

             (3)  In this section:

bankrupt includes a person who has been discharged from bankruptcy.

prescribed period, in relation to a bankrupt, means whichever of the following is the longest:

                     (a)  the period of the bankruptcy;

                     (b)  the period of 3 years from the date on which the bankrupt filed the bankrupt’s statement of affairs;

                     (c)  the period for which the bankrupt is or remains liable to make any payment under Division 4B of Part VI.

6  Paragraph 139J(a)

Omit “during the bankruptcy”, substitute “during a period after becoming bankrupt”.

7  Section 139K

Insert:

bankrupt includes a person who has been discharged from bankruptcy.

8  Section 139K (definition of contribution assessment period)

Repeal the definition, substitute:

contribution assessment period, in relation to a bankrupt, means each period that:

                     (a)  begins on the day on which the bankrupt becomes bankrupt or an anniversary of that day; and

                     (b)  ends 1 year after that day or anniversary, as the case requires;

with all contribution assessment periods coming to an end:

                     (c)  at the end of 3 years from the day on which the bankrupt becomes bankrupt, or on the day on which the bankrupt is discharged, whichever is the latest; or

                     (d)  if the bankruptcy is annulled—on the day of annulment.

9  Subsection 139L(1)

Omit “(1)”.

10  Subsection 139L(2)

Repeal the subsection (including the note).

11  Section 139R

Repeal the section, substitute:

139R  Liability not affected by subsequent discharge

                   A liability of a bankrupt under section 139P or 139Q is not affected by:

                     (a)  the bankrupt’s discharge from bankruptcy after the making of the assessment that gave rise to the liability; or

                     (b)  the expiration of the contribution assessment period.

12  Subsection 139WA(1)

Omit “(1)”.

13  Subsection 139WA(2)

Repeal the subsection.

14  Section 139ZIB (definition of bankrupt)

Repeal the definition.

15  Subsections 139ZIDA(2) and (3)

Repeal the subsections, substitute:

Discharge—no liability to pay contributions

             (2)  If:

                     (a)  a determination is in force under subsection 139ZIC(1) in relation to a bankrupt; and

                     (b)  the contribution assessment periods applying in relation to the bankrupt come to an end; and

                     (c)  at the time that the periods end, the bankrupt is not liable to pay a contribution;

the determination ceases to be in force when the contribution assessment periods come to an end.

Discharge—continuing liability to pay contributions

             (3)  If:

                     (a)  a determination is in force under subsection 139ZIC(1) in relation to a bankrupt; and

                     (b)  the contribution assessment periods applying in relation to the bankrupt come to an end; and

                     (c)  at the time that the periods end, the bankrupt is liable to pay a contribution;

the determination ceases to be in force when the bankrupt is no longer liable to pay a contribution.

16  Section 139ZIIA

Repeal the section, substitute:

 139ZIIA  Keeping of books

                   If:

                     (a)  a person is a bankrupt to whom the supervised account regime applies; and

                     (b)  the prescribed period under section 277A comes to an end;

that section will nevertheless continue to apply in relation to the person as if the period of the bankruptcy were the period during which the supervised account regime applies.

17  Section 139ZJ

Repeal the section.

18  Subsection 149(4)

After “section 27 of the Bankruptcy Amendment Act 1991”, insert “and before the commencement of subsection (5)”.

19  At the end of section 149

Add:

             (5)  If the bankrupt becomes a bankrupt after the commencement of this subsection, the bankrupt is discharged at the end of the period of 1 year from the date on which the bankrupt filed his or her statement of affairs.

20  Subsection 149A(1)

Omit “and (4)”, substitute “, (4) and (5)”.

21  Subsection 149A(1)

After “3 years”, insert “or 1 year (as the case may be)”.

22  Subparagraph 149A(3)(b)(i)

Omit “and (4)”, substitute “, (4) and (5)”.

23  At the end of section 265

Add:

           (10)  This section applies in relation to a bankrupt for the prescribed period.

           (11)  In this section:

bankrupt includes a person who has been discharged from bankruptcy.

prescribed period, in relation to a bankrupt, means whichever of the following is the longest:

                     (a)  the period of the bankruptcy;

                     (b)  the period of 3 years from the date on which the bankrupt filed the bankrupt’s statement of affairs;

                     (c)  the period for which the bankrupt is or remains liable to make any payment under Division 4B of Part VI.

24  Section 277A (heading)

Repeal the heading, substitute:

277A  Keeping of books during prescribed period

25  Paragraph 277A(1)(a)

Omit “the period of the bankruptcy”, substitute “the prescribed period”.

26  Paragraph 277A(1)(b)

Omit “discharged from the bankruptcy”, substitute “the end of the prescribed period”.

27  Paragraph 277A(2)(b)

Omit “the period of the bankruptcy”, substitute “the prescribed period”.

28  Paragraph 277A(3)(b)

Omit “bankrupt is discharged”, substitute “end of the prescribed period”.

29  At the end of section 277A

Add:

             (5)  In this section:

bankrupt includes a person who has been discharged from bankruptcy.

prescribed period, in relation to a bankrupt, means whichever of the following is the longest:

                     (a)  the period of the bankruptcy;

                     (b)  the period of 3 years from the date on which the bankrupt filed the bankrupt’s statement of affairs;

                     (c)  the period for which the bankrupt is or remains liable to make any payment under Division 4B of Part VI.

Part 2Application and transitional provisions

30  Application and transitional arrangements

(1)       In this item:

commencement day means the day on which this Schedule commences.

prescribed period, in relation to a bankrupt, means the period from the date on which the bankrupt filed the bankrupt’s statement of affairs to the commencement day.

(2)       Subject to subitem (3), the following provisions apply in relation to a person who is, immediately before the commencement day, a bankrupt:

                     (a)  if the prescribed period in relation to the bankrupt is less than 1 year—the bankrupt is discharged from bankruptcy at the end of 1 year from the date on which the bankrupt filed the bankrupt’s statement of affairs;

                     (b)  if the prescribed period in relation to the bankrupt is 1 year or more—the bankrupt is discharged from bankruptcy on the commencement day.

(3)       Subitem (2):

                     (a)  does not apply in relation to a bankrupt who, immediately before the commencement day, is subject to an objection that has extended the period of bankruptcy under sections 149 and 149A of the Bankruptcy Act 1966, as in force immediately before the commencement day (and those sections, as in force immediately before the commencement day, will continue to apply in relation to the bankrupt); and

                     (b)  does not limit the ability of a trustee to file with the Official Receiver an objection under section 149B of the Bankruptcy Act 1966 (and if such an objection has been filed with the Official Receiver before the commencement day then sections 149 and 149A of the Bankruptcy Act 1966, as in force immediately before the commencement day, will continue to apply in relation to the bankrupt).

(4)       However, if an objection is withdrawn or cancelled:

                     (a)  if the period from the date on which the bankrupt filed the bankrupt’s statement of affairs is less than 1 year—the bankrupt is discharged from bankruptcy at the end of the period of 1 year from the date on which the statement of affairs was filed; and

                     (b)  if the period from the date on which the bankrupt filed the bankrupt’s statement of affairs is 1 year or more—the bankrupt is discharged from bankruptcy immediately.

31  Transitional rules

(1)       The Minister may, by legislative instrument, make rules prescribing matters of a transitional nature (including prescribing any saving or application provisions) relating to the amendments or repeals made by this Act.

(2)       To avoid doubt, the rules may not do the following:

                     (a)  create an offence or civil penalty;

                     (b)  provide powers of:

                              (i)  arrest or detention; or

                             (ii)  entry, search or seizure;

                     (c)  impose a tax;

                     (d)  set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;

                     (e)  directly amend the text of this Act.