Indexed amounts

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).

Release date: 31 July 2019

Protected property

Protected property Limit Bankruptcy Act & Regulations

Tools

A bankrupt may keep tools used to earn an income up to this limit.

$3,800

s116(2)(c)(i) and R6.03B (1) & (2)

Vehicles

A bankrupt may keep vehicles (cars or motorbikes) used mainly for transport up to this limit. The amount refers to the equity in the vehicles (the value of the vehicles less the sum owing under finance).

$8,000

s116(2)(ca) and R6.03B (3) & (4)

Limits updated each financial year

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:

 

 

  • aircraft
$22 s77E(2) and s304A(1)(b)
  • private motor vehicle
$22 s77E(3) and s304A(1)(c)
  • other
$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)
$57,866.90


s139K

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

Historical indexations

Indexed amounts PDF version