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How to update your income or employment details
One of your obligations when bankrupt is to keep your trustee informed of any changes in your income or employment.
For example, if you:
- change jobs
- receive higher or lower income (including government assistance)
- stop working.
There is no limit to the amount of income you can earn while you're bankrupt. There is also no limit to the amount you can save during your bankruptcy.
However, if your after-tax income goes above a set amount, you may need to make compulsory payments (or income contributions). This amount changes with how many dependants you have.
Next step:
If your trustee is the Official Trustee (AFSA) update us now.
When you update your income, your trustee may request further information if they believe your income exceeds the set amount. If you trustee is the Official Trustee (AFSA), we may send you a statement of income form to complete.
What are contributions?
If your trustee determines you are earning over the income set 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, they are 50% of the amount 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
- any income they earn is within the limit set for dependants.
Income contributions calculator
Use our income contributions calculator to estimate the annual contribution you may need to pay during bankruptcy.
COVID-19 response packages
How payments from the Coronavirus Economic Response Package affect people in bankruptcy
Economic support payments – are not claimable by your bankruptcy trustee as income or as an asset, regardless of whether you received the payment before or after the date of bankruptcy.
COVID-19 supplement payments – are claimable by the trustee if you received them before the date of bankruptcy and it remained in your bank account when you became bankrupt. During bankruptcy these payments are included in your after-tax income amount. If your after-tax income exceeds a set amount, you may have to make compulsory payments
More information about these types of payment are available at Services Australia.
Early access to superannuation – If you received payments from your superannuation under the Coronavirus Economic Response Package, there is no change to the way this payment is treated in bankruptcy. See Is my superannuation affected? for details on what happens to your super during bankruptcy.
The Australian Taxation Office has more information about super payments on their website at Early access to your super.