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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.
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.