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: 26 July 2017

Protected property

Protected property Limit Bankruptcy Act & Regulations

Tools

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

$3,700

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).

$7,800

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.

$5,613

s269(1)(a), (aa), (ab), (ac), (ad) and s304A(1)(j)

Warning

Failure to disclose bankrupt or debtor status in the above mentioned circumstances can result in criminal penalties.

 

 

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.

$21

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
$21 s77E(2) and s304A(1)(b)
  • private motor vehicle
$21 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

A person cannot propose a debt agreement if their unsecured debts are more than this limit.

Unsecured assets

A person cannot propose a debt agreement if their divisible property is more than this limit.

$110,892.60

s185C(4)(b), (c) & (5)

Income level

A person cannot propose a debt agreement if their after tax income for the year is more than this limit.

$83,169.45

s185C(4)(d) & (5)
Limits updated twice a year: 20 March and 20 September

 

Other amounts

Other amounts Limit Bankruptcy Act & Regulations

Registered trustee minimum remuneration entitlement

Trustees who are appointed, or who consent to act, before 1 September 2017 in respect of the administration of a bankruptcy, PIA or s188 authority commencing or executed prior to 1 December 2010, may recover this amount as remuneration from the estate or, if there are insufficient funds in the estate, from the bankrupt.

$1,849

s161B(1) and (2) - as in force prior to 1 December 2010

Trustees who are appointed,or who consent to act, before 1 September 2017 in respect of the administration of a bankruptcy, PIA or s188 authority commencing or executed on or after 1 December 2010 may recover this amount as remuneration from the estate where remuneration otherwise payable is less than this amount. * This amount is not indexed. $5,000* s161B(1)
Limits updated quarterly

Registered trustee maximum default amount of remuneration

Trustees who are appointed, or who consent to act, on or after 1 September 2017 in respect of the administration of a bankruptcy, PIA or s188 authority (regardless of date when the bankruptcy commences, or the PIA or s188  authority is executed) are entitled to this amount of remuneration if their remuneration is not determined by creditors, a committee of inspection or the Inspector-General in Bankruptcy.

$5,105

s60-15 of Schedule 2 - as in force from 1 September 2017

Limit updated each financial year

Extent of priority for employee amounts

If an employee is owed money by a bankrupt, they are entitled to receive payment of any dividends issued in preference to those issued to other unsecured creditors, up to this limit.

$4,450 s109(1)(e) and R6.02
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)
$55,446.30


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 $55,446.30
1 $65,426.63
2 $70,416.80
3 $73,189.12
4 $74,298.04
over 4 $75,406.97
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.

$3,539

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