Federal Register of Legislation - Australian Government

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Determinations/Other as made
This determination sets the level of the realisations charge for personal insolvency.
Administered by: Attorney-General's
Registered 02 Apr 2014
Tabling HistoryDate
Tabled HR13-May-2014
Tabled Senate14-May-2014
Date of repeal 01 Jul 2015
Repealed by Bankruptcy (Estate Charges) (Amount of Charge Payable) Determination 2015

EXPLANATORY STATEMENT

Bankruptcy (Estate Charges) (Amount of Charge Payable) Determination 2014

 

Summary

The Bankruptcy (Estate Charges) (Amount of Charge Payable) Determination 2014 (the Determination) is made under section 7 of the Bankruptcy (Estate Charges Act) 1997 (the Act) by the Attorney-General. 

The instrument determines the percentage payable as the realisations charge on amounts received by trustees, controlling trustees and debt agreement administrators.

Background

The Australian Financial Security Authority (AFSA) has responsibility for the administration and regulation of Australia’s personal insolvency system.  The realisation charge on funds realised in an administration is set at a level which substantially recovers the cost of AFSA’s regulation and enforcement activities. 

The increase in the rate of the charge introduced by the Determination will be used to fund other activities which were previously funded by the Government including:

·         Processing Creditor Petitions and Declarations of Intentions;

·         Debt Agreements – Compliance and Education;

·         Issuing Official Receiver notices under section 77CA of the Bankruptcy Act 1966; and

·         Information provision.

Debtors, creditors and the general public benefit from AFSA’s regulation and enforcement activities and the other activities referred to above, which enhance the integrity and efficiency of the personal insolvency system. 

Consultation

A review of AFSA’s activities and costs has been undertaken as part of a Cost Recovery Impact Statement (CRIS) on AFSA’s insolvency and trustee services that was developed in compliance with the Australian Government Cost Recovery Guidelines.  As part of that process, a draft CRIS was provided to the Bankruptcy Reform Consultative Forum, which operates as a Cost Recovery Reference Group for this CRIS, and published on the Attorney-General’s Department website for public comment. The formal consultation period for the CRIS commenced on 6 February 2014 and closed on 28 February 2014.  Issues raised by stakeholders during the consultation period were used in finalising the CRIS. 

Regulation Impact Analysis

The Office of Best Practice Regulation has advised that the amendments provided for by the Determination do not require a regulation impact statement.

Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

A Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 is provided at Attachment A to this Explanatory Statement.

 


 

Notes on Sections

Section 1 – Name of Determination

Section 1 provides for the citation of the Bankruptcy (Estate Charges) (Amount of Charge Payable) Determination 2014.

Section 2 – Commencement

The Determination commences on 1 July 2014.

Section 3 – Repeal

Commencement of the Determination ends the application of the Bankruptcy (Estate Charges) (Amount of Charge Payable) Determination 2013.

Section 4 – Amount of charge payable

Section 4 sets out the percentage payable as the realisations charge on amounts received by trustees, controlling trustees and debt agreement administrators.  The amount payable is increased from 4.7% to 6.0%.

 


 

Attachment A

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Bankruptcy (Estate Charges) (Amount of Charge Payable) Determination 2014

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

This Legislative Instrument determines the percentage payable as the realisations charge on amounts received by trustees, controlling trustees and debt agreement administrators. 

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.