My income or employment has changed (or may change)

During bankruptcy, you must tell your trustee when your circumstances change.

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Ensure your details are current

One of your obligations when bankrupt is you must tell your trustee if there are changes in your income or employment.

This includes, if you:

  • start or stop working
  • change jobs
  • receive higher or lower income (including government assistance).

There is no limit to the amount of income you can earn or money you can save while you're bankrupt.

However, if your after-tax income goes above a set income threshold amount, you may need to make compulsory payments (income contributions). See below What are contributions?

Inform your trustee

When you update your income, your trustee may request further information if they believe your income exceeds the set income threshold amount.

If your bankruptcy is administered by a registered trustee, contact your trustee.

If your trustee is the Official Trustee (AFSA), notify us using the below form.

Note: We may send you a statement of income form to complete.

Update my contact details or income and employment 

What are contributions?

If your trustee determines your income is over the set income threshold amount, they'll ask you to make compulsory payments (also called income contributions). The amount you may need to pay depends on your income and how many dependants you have. Your trustee can use these contributions to help repay your debts.

If you do need to make compulsory payments, the amount is 50% of what you earn above the income threshold.

Your trustee will tell you how and when you need to make payments. If you have any questions about these payments, contact your trustee.

For more information, read about income contributions.

What is a dependant?

We classify a dependant as someone who meets all of the following criteria:

  • they live with you
  • they depend on you financially
  • their income is not more than the set amount for dependants.

Income contributions calculator

Use our income contributions calculator to estimate the annual contribution you may need to pay during bankruptcy.

Income contributions calculator

Earning income during bankruptcy

Simon is bankrupt and was unemployed until recently accepting a teaching position at a school, with income of $100,000 (after tax) a year.

Bankrupts are obligated to report all changes in income and employment to their trustee, so Simon ensured this was reported.

The trustee told Simon that due to now earning above the income threshold*, income contributions are payable, which is 50% of what is earned above the income threshold.

As Simon's after-tax income is $100,000 and he has 2 dependants, the income threshold is $91,589.23* (based on March 2025 thresholds), therefore the annual income contribution is around $4,205.

Simon's fortnightly after-tax pay is about $3,846.15, therefore compulsory income contributions are around $161.73 per fortnight.

* The income thresholds change twice a year and are different depending on how many dependants you have. You can find the latest thresholds at indexed amounts.

Note: These case studies do not constitute legal or financial advice. You should consider whether the options referred to in the case studies are appropriate for you, and seek advice if necessary, before taking any action.

Update income and employment details Update my details Income contributions calculator Indexed amounts