Commonwealth Numbered Acts Commonwealth Numbered Acts
1 Subsections 64U(2) to (4)
Repeal the subsections.
2 Subsection 64U(5)
Omit "A statement to be made by the trustee as mentioned in subsection (3)", substitute "The trustee must then state the basis on which the trustee wishes to be remunerated. The statement".
3 Subsection 64U(5A)
Omit "subsection (3)", substitute "subsection (5)".
4 After subsection 64U(6)
Insert:
(6A) The President must invite the creditors and their representatives to propose a motion that the trustee be remunerated in accordance with the statement and, if no such motion is proposed, the trustee may propose such a motion.
5 Subsection 64U(7)
Omit "subsection (4)", substitute "subsection (6A)".
6 After subsection 64U(7)
Insert:
(7A) If:
(a) the meeting is the first meeting of the bankrupt's creditors and the trustee is a registered trustee; and
(b) the following apply:
(i) before the meeting the trustee had given a notice under section 64ZBA that contained a proposal relating to how the trustee was to be remunerated;
(ii) the notice satisfied subsections 64ZBA(2) and (2A);
(iii) the proposal was taken to have been passed under subsection 64ZBA(3);
then subsections (1) to (7) of this section do not apply in relation to the meeting.
7 After subsection 64ZBA(2)
Insert:
(2A) If the proposal relates to how the trustee is to be remunerated, the notice must also:
(a) if the trustee proposes to charge on a time‑cost basis:
(i) if there is only one rate at which the remuneration is to be calculated--state that rate; or
(ii) otherwise--state the respective rates at which the remuneration of the trustee and the other persons who will be assisting, or will be likely to assist, the trustee in the performance of his or her duties are to be calculated; and
(b) if the trustee proposes to charge on the basis of a commission upon money received by the trustee--state the rate of that commission; and
(c) state the periods at which the trustee proposes to withdraw funds from the bankrupt's estate in respect of the trustee's remuneration; and
(d) include an estimate of the total amount of the trustee's remuneration and an explanation of the likely impact of that remuneration on the dividends (if any) to creditors.
8 Subsection 64ZD(1)
Omit "subsection 64U(4)", substitute "subsection 64U(6A)".
9 Subsection 161B(1)
Repeal the subsection, substitute:
(1) If the total remuneration payable to the trustee under section 162 would be less than the following amount (the statutory minimum ):
(a) $5,000;
(b) if another amount is prescribed by the regulations for the purposes of this paragraph--that other amount;
the trustee is entitled to be paid, from the funds in the bankrupt's estate, additional remuneration equal to the shortfall.
10 Subsection 161B(1A)
Omit "(as affected by section 304A)".
11 Subsections 161B(2) and (3)
Repeal the subsections.
12 Subsection 162(4)
Repeal the subsection, substitute:
(4) If the remuneration of the trustee is not fixed by the creditors or the committee of inspection, the trustee may, in the circumstances prescribed by the regulations, make an application, in accordance with the regulations, to the Inspector‑General for the Inspector‑General to decide the trustee's remuneration.
(4A) If an application is made to the Inspector‑General under subsection (4), the Inspector‑General must, by writing, decide the trustee's remuneration, having regard to the matters prescribed by the regulations.
(4B) The Inspector‑General must give written notice of his or her decision under subsection (4A) to the trustee and to the bankrupt and creditors.
13 Section 167
Repeal the section, substitute:
The trustee must, in relation to the payment for services provided by another person in relation to the administration of a bankrupt's estate, give such notices to the bankrupt and creditors of the bankrupt as are required by the regulations.
167 Review of remuneration etc.
Trustee's remuneration
(1) The regulations may make provision for and in relation to:
(a) the Inspector‑General reviewing decisions of the trustee of the estate of a bankrupt to withdraw, or to propose to withdraw, funds from the estate for payment of the trustee's remuneration; and
(b) the bankrupt or a creditor of the bankrupt applying for the review.
Payment to third parties
(2) The regulations may make provision for and in relation to:
(a) the Inspector‑General reviewing a bill of costs for services provided by a person (the third party ) in relation to the administration of a bankrupt's estate; and
(b) the trustee of the estate applying for the review.
Content of regulations
(3) The regulations may provide for:
(a) the powers available to the Inspector‑General in relation to the review; and
(b) the trustee or the third party to provide information or documents to the Inspector‑General; and
(c) the decisions that may be made by the Inspector‑General in relation to the review; and
(d) the notification of decisions made by the Inspector‑General.
Repayment--trustee
(4) The regulations may provide that, if the Inspector‑General is satisfied that a withdrawal by the trustee of funds from the estate of the bankrupt for payment of the trustee's remuneration exceeds the amount of remuneration the trustee is entitled to under this Division, the Inspector‑General may require the trustee to repay the excess to that estate.
(5) The amount of the excess is recoverable by the Inspector‑General, as a debt due to the estate of the bankrupt, by action against the trustee in a court of competent jurisdiction.
Appeal to the Court
(6) The trustee, the bankrupt or a creditor of the bankrupt may appeal to the Court from a decision of the Inspector‑General in relation to the review. In addition, if the review is of the kind mentioned in subsection (2), the third party may also appeal to the Court from a decision of the Inspector‑General in relation to the review.
Interpretation
(7) Subsections (3) and (4) do not limit subsections (1) and (2).
14 Subsection 304A(1) (paragraph (i) of the definition of indexable amount )
Repeal the paragraph.
15 Subsection 304A(4)
Repeal the subsection.
16 Subsection 304A(6)
Omit ", (4)".
17 Application
The amendments made by this Schedule apply in relation to bankruptcies for which the date of the bankruptcy is on or after the day on which this item commences.