A number of law reform and subsequent administrative changes from the Bankruptcy Amendment (Debt Agreement Reform) Act 2018 and the Insolvency Law Reform Act 2016, will commence soon.
At AFSA, we’re getting ready to implement the changes and we want to support you to be ready too. This message outlines some of the key changes and dates that you need to be aware of. (Further details on the changes can be found in the March edition of the Personal Insolvency Regulator.)
Annual Estate Returns becomes Annual Administration Return
One of the administrative changes is the renaming of the Annual Estate Return (AER) to the Annual Administration Return. This change will be released on 5 June 2019 and applies for the 2018-19 financial year and future years.
New lodgement date
The due date for returns to be filed by insolvency practitioners has changed from 35 calendar days after the end of the financial year, to 25 business days.
This change applies for the 2018–19 financial year, and subsequent years moving forward.
This means that Annual Administration Returns (Annual Estate Returns) for 2018–19 must be filed by 2 August 2019. Realisations charge and interest charge payments for 2018–19 will be due and payable on 4 August 2019. As 4 August 2019 is a Sunday, the due date defaults to the next business day, which is Monday 5 August 2019.
We recommend that practitioners aim to have both lodgements and payments made by 2 August 2019.
Updated forms and guidance
You may have seen a draft of the updated IGPS7—Annual Administrations Returns, which we released through the AFSAsandpit. We expect this and other guidance, including the updated Annual Administration Returns user guides, forms and website content, to be finalised and published by 5 June 2019.
We will provide further updates over the coming weeks. In the meantime, if you have any queries please direct them to regulation [at] afsa.gov.au.
National Manager | Regulation and Enforcement | Australian Financial Security Authority