From July 2021 AFSA will use data analytics to monitor the number of aged administrations held by registered trustees.
Administrations should be progressed as quickly as circumstances will allow. Trustees are reminded to regularly monitor and review the age of their administrations, and if appropriate, should finalise them.
When should a practitioner finalise an administration?
Trustees will need to exercise their judgment in finalising administrations. In some cases, administrations can be finalised before the bankruptcy discharge date. In other cases, it may be finalised well beyond the discharge date.
When deciding whether to finalise an administration, trustees should consider the following tasks:
- Sending creditors notice of bankruptcy and a report on the likelihood of a dividend (paragraph 19(1)(c))
- Carrying out preliminary inquiries and actions, and informing the person who is bankrupt of their obligations
- Informing creditors of the outcome of inquiries
- Taking action to recover and realise property, including divested assets, or other antecedent transactions for the benefit of the estate (paragraph 19(1)(f))
- Assessing and collecting income contributions or noting when no further contribution is expected
- Paying dividends to creditors after giving appropriate notice of intention to declare, and dealing with proofs of debt (paragraph 19(1)(c) and sections 140 and 145)
- Sending all necessary remuneration notices when due
- Identifying and referring evidence of offences (paragraphs 19(1)(h) and (i))
- Lodging any required statutory returns e.g. to AFSA or ATO
- Settling complaints, reviews or litigation involving the estate.
What are the effects of finalising administrations?
Under section 184 of the Bankruptcy Act 1966, a registered trustee will be released from office at the end of 7 years from the date noted on the NPII that the administration of an estate is finalised. This release will have the same effect as an order under section 183 of the Act.
Practitioners can finalise administrations on the Practitioner AAR Online site.
If there are any questions about finalisations, please email regulation [at] afsa.gov.au