The Bankruptcy Act and Regulations contain a number of thresholds, limits and other amounts that are regularly indexed (changed in line with the Consumer Price Index or the base pension rate).
Protected property
Credit limit
| Credit limit | Limit | Bankruptcy Act & Regulations |
|---|---|---|
|
Above this limit, bankrupts and debt agreement debtors* must disclose their bankrupt or debtor status when seeking to obtain goods or services on credit, by hire purchase or cheque; when leasing, hiring or promising to pay for goods and services; or when seeking to obtain an amount by promising to supply goods or render services. |
$5,812 |
s269(1)(a), (aa), (ab), (ac), (ad) and s304A(1)(j) |
|
Warning It is a criminal offence if you are bankrupt or subject to a debt agreement to obtain or attempt to obtain credit in certain circumstances. Severe penalties apply to these offences. |
||
| A trustee may lodge an objection if a bankrupt engages in misleading conduct in respect of an amount, or combined amounts, which exceed this limit. | s149D(1)(c) and s304A(1)(g) | |
| Limit updated quarterly | ||
*This extends to debtors in debt agreements that commenced on or after 1 December 2010
Official Receiver allowances and advances
| Official Receiver allowances and advances | Limit | Bankruptcy Act & Regulations |
|---|---|---|
|
Attendance A person, other than a bankrupt, who attends before the Official Receiver or authorised officer to give evidence/information is entitled to this allowance. |
$22 |
s77D(1)(a) and s304A(1)(a) |
|
Advances Where a person is required to attend before the Official Receiver, the Official Receiver must offer the following advances on allowances and reimbursement of expenses before a person begins travelling by: |
|
|
|
$22 | s77E(2) and s304A(1)(b) |
|
$22 | s77E(3) and s304A(1)(c) |
|
$10 | s77E(4)(a) & (b) and s304A(1)(d) & (e) |
| Limits updated quarterly | ||
Part IX debt agreement eligibility
| Part IX debt agreement eligibility | Limit | Bankruptcy Act & Regulations |
|---|---|---|
|
Unsecured debts Your unsecured debts must be less than this to propose a debt agreement. |
$115,733.80 |
s185C(4)(b) & (5) |
|
Unsecured assets Your unsecured assets must be less than this to propose a debt agreement. |
$231,467.60 | s185C(4)(c) & (5) |
|
Income level Your income must be less than this to propose a debt agreement. |
$86,800.35 |
s185C(4)(d) & (5) |
| Limits updated twice a year: 20 March and 20 September | ||
Other amounts
| Other amounts | Limit | Bankruptcy Act & Regulations |
|---|---|---|
| Trustee remuneration – the amount a registered trustee can take from an estate (includes a bankruptcy; a personal insolvency agreement; or a controlling trustee authority) unless creditors, a committee of inspection or the Inspector-General in Bankruptcy set a different amount |
|
|
| Where the trustee is appointed in the current financial year, regardless of when the estate began |
$5272 |
s60-15 of Schedule 2 |
| Limit updated each financial year – for trustee appointments in prior financial years (from 2017-18) see the historical indexations | ||
| Where the trustee was appointed before 1 September 2017, and the estate began on or after 1 December 2010 | $5000 | s161B as it was from 1 December 2010 to 31 August 2017 |
| This amount is not indexed | ||
| Where the trustee was appointed before 1 September 2017, and the estate began before 1 December 2010 |
$1,915 |
s161B as it was before 1 December 2010 |
| Limit updated each financial year | ||
Income contributions
| Income contributions | Limit | Bankruptcy Act & Regulations |
|---|---|---|
|
Base Income Threshold Amount (BITA) no dependants Used when calculating a bankrupt's income contributions |
(net of tax) |
|
|
Actual Income Threshold Amount (AITA) with dependants Used when calculating a bankrupt's income contributions which vary according to the number of dependants. |
|
s139K |
| Number of dependants | Income limit | |
| 0 | $57,866.90 | |
| 1 | $68,282.94 | |
| 2 | $73,490.96 | |
| 3 | $76,384.31 | |
| 4 | $77,541.65 | |
| over 4 | $78,698.98 | |
| Limits updated twice a year: 20 March and 20 September | ||
Dependants
| Dependants | Limit | Bankruptcy Act & Regulations |
|---|---|---|
|
Amount a person can earn and still remain a 'dependant' A person may earn income up to this limit during the contribution assessment period and still be considered a dependant for the purpose of calculating a bankrupt's income contribution liability. |
$3,664 |
s139K and R6.15A |
| Limits updated quarterly | ||
Bankruptcy notice
| Bankruptcy notice | Limit | Bankruptcy Act & Regulations |
|---|---|---|
|
This is the minimum amount upon which a bankruptcy notice can be issued (it may be comprised of one or more final judgments/orders) |
$5,000 |
s41 |
| The minimum judgment amount is set by the Bankruptcy Act and is not indexed | ||
