Commonwealth Numbered Regulations - Explanatory Statements

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BANKRUPTCY RULES (AMENDMENT) 1995 NO. 251

STATUTORY RULES 1995 No. 251

Issued by the Authority of the Minister for justice

Bankruptcy Act 1966

Bankruptcy Rules (Amendment)

Subsection 315(1) of the Bankruptcy Act 1966 (the Act) provides that the GovernorGeneral may make rules prescribing matters that are required or permitted to be prescribed or that are necessary or convenient to be prescribed for the carrying out or giving effect to the Act.

The costs which solicitors may charge are set out in rule 162 and in Schedule 3. In 1993, in line with a recommendation by the Federal Costs Advisory Committee, subrule 162(2B) was inserted, which had the effect of increasing those costs by 2.92 per cent. The proposed rules, in line with subsequent recommendations by the Committee, further increase those costs. This is done by replacing subrule 162(2B) with a new subrule that increases the base costs in rule 162 and in Schedule 3 by 9.01 per cent.

Details of the regulations are set out below.

Rule 1 - Amendment

Rule 1.1 provides that the Bankruptcy Rules are amended as set out in these rules.

Rule 2 - Rule 162 (Scale of costs)

Subrule 162(2B)

Rule 2.1

Rule 162 of the Bankruptcy Rules sets out the scale of solicitors' costs in bankruptcy matters. Subrule 162(1) provides that except as otherwise ordered, in all proceedings solicitors are entitled to charge and be allowed costs as specified in Schedule 3. Schedule 3 itemises matters in connection with which costs are payable to solicitors and the amount of costs payable in respect of each item. Subrule 162(2B), which increased the costs specified in rule 162 and in Schedule 3 by 2.92 per cent, was inserted into the Bankruptcy Rules in 1993 and commenced on 1 June 1993.

The scale of costs is reviewed regularly by the Federal Costs Advisory Committee, and in its eleventh and twelfth reports, the Committee recommended increases in the scale amounting to 3.09 per cent and 2.75 per cent respectively. These recommended increases are to be implemented by applying a multiplier to Schedule 3. Rule 2.1 implements the recommendations of the Committee.

Rule 2.1 omits current subrule 162(2B) and inserts a new subrule 162(2B) to increase the costs specified in rule 162 and in Schedule 3 by 9.01 per cent, being costs incurred on or after the commencement of new subrule 162(2B) which commenced on Gazettal.