Commonwealth Numbered Acts

BANKRUPTCY AMENDMENT ACT 1997 No. 11 of 1997 - SCHEDULE 1

Schedule 1-Amendment of the Bankruptcy Act 1966 1 At the end of paragraphs
20D(1)(a) and (b) Add "or".
2   At the end of subsection 20D(1)
Add:
; or (e) in bank bills accepted or endorsed by an approved bank. 3 Paragraph
154A(3)(b) Repeal the paragraph, substitute:

   (b)  the charge imposed by section 4 of the Bankruptcy (Registration 
        Charges) Act 1997 . 4 At the end of section 154A Add:

(4) The application is properly made if subsections (2) and (3) are complied
with. 5 Subsection 155(1) Omit "an application", substitute "a properly made
application". 6 Paragraph 155C(1)(b) Repeal the paragraph, substitute:

   (b)  the applicant has paid the charge imposed by section 5 of the
        Bankruptcy (Registration Charges) Act 1997. 7 Paragraph 155D(b) Repeal
        the paragraph, substitute:

   (b)  the person has paid the charge imposed by section 6 of the
        Bankruptcy (Registration Charges) Act 1997. 8 Paragraph 155E(3)(b)
        Repeal the paragraph, substitute:

   (b)  the charge imposed by section 7 of the Bankruptcy (Registration 
        Charges) Act 1997 . 9 After subsection 155E(3) Insert:

(3A) The application is properly made if subsections (2) and (3) are complied
with. 10 Subsection 155E(4) Omit "an application", substitute "a properly made
application". 11 Subsection 163(1) Omit all the words up to and including
"shall be", substitute "The Official Trustee is to be". 12 At the end of
section 163 Add: Note: The prescribed remuneration may be in respect of work
the Official Trustee does as trustee of the estate of a bankrupt or in respect
of work done in any other situation under this Act (such as where the Official
Trustee acts as a trustee as a result of a deed of arrangement). 13 Subsection
169(1) Repeal the subsection, substitute:

(1) A trustee of the estate of a bankrupt must pay all money received by him
or her on account of the estate to the credit of a single interest bearing
bank account that complies with the requirements (if any) specified in the
regulations.

(1A) The trustee must only pay into the account money received by the trustee
on account of the estate of a bankrupt, but he or she may pay in money
received on account of more than one estate.

(1B) The trustee is entitled, in his or her personal capacity, to each payment
of interest on the account, less an amount equal to the bank fees or charges
(if any) paid or payable on the account during the period to which the
interest relates.

(1C) If, under subsection (1B), the trustee is only entitled to part of a
payment of interest, the rest of that payment:

   (a)  if the account contains money from only one estate-forms part of that
        estate; or

   (b)  if the account contains money from more than one estate-forms part of
        those estates in proportion to the respective amounts of money held in
        the account on account of each of those estates.

(1D) Interest on money in the bank account is not subject to taxation under a
law of the Commonwealth, a State or a Territory except as provided in Part 2
of the Bankruptcy (Estate Charges) Act  1997 . 14 Section 171 Repeal the
section, substitute: 171 Trustee to give and obtain receipts

(1) The trustee of the estate of a bankrupt must issue a receipt in respect of
a payment into the estate if asked to do so by the person making the payment.

(2) The trustee must, wherever practicable, obtain a receipt for a payment
made out of the estate. 15 Section 172 Repeal the section. 16 At the end of
section 173 Add: Penalty: 5 penalty units. 17 Subsections 175(1) and (2)
Repeal the subsections, substitute:

(1) The Inspector-General may, on his or her own initiative or at the request
of a creditor or the bankrupt, audit an account referred to in section 173 or
cause it to be audited by an appropriate person. Note: The heading to section
175 is replaced by the heading "Audit of trustee's accounts". 18 At the end of
subsection 175(5) Add: Penalty: 5 penalty units. 19 Subsection 175(7) Repeal
the subsection. 20 After Part XIV Insert:
Part XV-Provisions relating to the Bankruptcy Charges Acts 278 Interpretation
In this Part:
Estate Charges Act means the Bankruptcy (Estate Charges) Act 1997. interest
charge means charge imposed by Part 2 of the Estate Charges Act.
late payment penalty means penalty payable under subsection 281(1).
realisations charge means charge imposed by Part 3 of the Estate Charges Act.
registration charge means charge imposed by the Registration Charges Act.
Registration Charges Act means the Bankruptcy (Registration Charges)  Act 1997
. 279 Administration of, and powers and functions in relation to, the Charges
Acts

(1) The Inspector-General has the general administration of the Estate Charges
Act and the Registration Charges Act.

(2) A reference to "this Act" in section 12 or 77AA of this Act is taken to
include a reference to the Estate Charges Act and the Registration Charges
Act. 280 Deferred payment of interest charge or realisations charge

(1) A person may defer the payment of an amount of interest charge relating to
a particular trustee account if:

   (a)  the total amount of interest charge that the person is liable to pay
        in respect of the account is less than $50; and

   (b)  the account has not been closed; and

   (c)  the person has notified the Inspector-General as provided for in
        subsection (3).

(2) A person may defer the payment of an amount of realisations charge
relating to a particular bankrupt's estate, deceased person's estate or
debtor's property, as the case may be, if:

   (a)  the total amount of realisations charge that the person is liable to
        pay in respect of the estate or property is less than $50; and

   (b)  the trustee account in relation to the estate or property has not been
        closed; and

   (c)  the person has notified the Inspector-General as provided for in
        subsection (3).

(3) If a person intends to defer paying an amount of interest charge or
realisations charge, he or she must notify the Inspector-General in writing of
that fact before the time by which the amount is otherwise required to be
paid.

(4) If a person defers payment of an amount of interest charge or realisations
charge in accordance with this section, the amount is still payable to the
Commonwealth, but the person does not have to pay it until 21 days after
whichever of the following happens first:

   (a)  at the end of a charge period:

        (i)    if the deferral is of interest charge-the total amount of
               interest charge that the person is liable to pay in respect of
               the relevant trustee account is $50 or more; or

        (ii)   if the deferral is of realisations charge-the total amount of
               realisations charge that the person is liable to pay in respect
               of the relevant estate or property is $50 or more;

   (b)  the relevant trustee account is closed. Note: As a deferred amount is
        still payable to the Commonwealth, it must be taken into account in
        working out the total amounts referred to in paragraphs (1)(a), (2)(a)
        and (4)(a).

(5) In this section: trustee account means an account under section 169, or
under that section as applied by any of the following provisions:

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

   (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). 281 Late payment penalty-interest charge and
        realisations charge

(1) If any interest charge or realisations charge remains unpaid after the
time for payment of the charge, the person liable to pay the charge is liable
to pay to the Commonwealth a late payment penalty calculated from that time at
the rate of 20% per year on the amount unpaid.

(2) The person liable to pay late payment penalty is personally liable to pay
the penalty and is not entitled to be reimbursed in respect of the penalty out
of the bankrupt's estate, the deceased person's estate or the debtor's
property, as the case may be. 282 Extension of time for payment-interest
charge and realisations charge

(1) The Inspector-General may, in a particular case, extend the time for
payment of interest charge or realisations charge.

(2) The following provisions apply in relation to extensions of time under
subsection (1):

   (a)  the person liable to pay the charge may apply for an extension;

   (b)  an application is to be in writing, setting out the reasons for the
        application, and is to be made to the Inspector-General;

   (c)  the Inspector-General's decision on an application is to be in
        writing;

   (d)  application may be made to the Administrative Appeals Tribunal for
        review of a decision to refuse an application, or to grant a lesser
        extension than was applied for. Note: Section 27A of the
        Administrative Appeals Tribunal Act 1975 requires notification of a
        decision that is reviewable. 283 Remission of interest charge,
        realisations charge and late payment penalty

(1) The Inspector-General may remit an amount of interest charge, realisations
charge or late payment penalty that is payable but has not been paid if the
Inspector-General thinks that:

   (a)  failure to remit the amount would cause a person hardship; and

   (b)  it is appropriate to remit the amount.

(2) The following provisions apply in relation to remissions under subsection
(1):

   (a)  the person liable to pay the charge or penalty may apply for a
        remission;

   (b)  an application is to be in writing, setting out the reasons for the
        application, and is to be made to the Inspector-General;

   (c)  the Inspector-General's decision on an application is to be in
        writing;

   (d)  application may be made to the Administrative Appeals Tribunal for
        review of a decision to refuse an application, or to remit a lesser
        amount than was applied for. Note: Section 27A of the
        Administrative Appeals Tribunal Act 1975 requires notification of a
        decision that is reviewable. 284 Recovery of interest charge,
        realisations charge and late payment penalty
Interest charge, realisations charge or late payment penalty that is due and
payable may be recovered by the Commonwealth as a debt due to the
Commonwealth. 285 Payments by cheque or payment order

(1) If a person gives the Commonwealth a cheque or payment order in payment of
an amount of interest charge, realisations charge, registration charge or late
payment penalty, the amount is taken not to be paid until the cheque or
payment order is paid by the bank or other person on which it is drawn.

(2) If:

   (a)  a person gives the Commonwealth a cheque or payment order in payment
        of an amount of interest charge or realisations charge; and

   (b)  the cheque or payment order is paid by the bank or building society on
        which it is drawn; then, for the purposes of working out if there is a
        liability to late payment penalty, the amount of charge is taken to
        have been paid when the person gave the cheque to the Commonwealth.
        286 Regulations may deal with other matters

(1) The regulations may include other provisions dealing with the collection
and recovery of interest charge, realisations charge or late payment penalty,
including (but not limited to) provisions dealing with the following:

   (a)  the methods by which charge and late payment penalty may be paid;

   (b)  refunds of, or overpayments of, charge or late payment penalty;

   (c)  as an alternative to the refund of the whole or a part of an amount to
        a person, crediting the amount or part of the amount against a
        liability of the person to pay charge or late payment penalty;

   (d)  forms to be used, and information to be provided, in relation to the
        payment of charge and late payment penalty.

(2) The matters that may be covered in regulations made for the purposes of
paragraph (1)(a) include, but are not limited to, the making of payments
using:

   (a)  electronic funds transfer systems; or

   (b)  credit cards; or

   (c)  debit cards.

(3) A refund of an amount in accordance with the regulations is to be paid out
of the Consolidated Revenue Fund, which is appropriated accordingly. 21 At the
end of paragraph 315(2)(j) Add:

        (v)    the making of other requests or applications under this Act or
               the presentation or lodgment of other documents under this Act;
               and