Remuneration

Information about remuneration for registered & controlling trustees, debt agreement administrators and the Official Trustee. 

Registered & controlling trustees

The entitlement of registered and controlling trustees to remuneration is set out in Division 2 of Part VIII of the Act.

The statutory minimum amount of remuneration to which these trustees are entitled can be found on the indexed amounts page.

Where a Trustee wishes to claim remuneration above the minimum amount they need the approval of creditors. Creditors may approve remuneration at a meeting, by a committee of inspection or by a section 64ZBA process, which allows a trustee to notify creditors – for example, by post or e-mail – of his or her remuneration proposal.  If at least one creditor supports the trustee’s proposal, and no creditor objects, then the remuneration proposal is taken to be approved without the need for a meeting of creditors.

The information that trustees have to provide to creditors and bankrupts is set out in Inspector-General Practice Direction (IGPD) 18.

For administrations commencing after 1 December 2010, if trustees are unable to obtain the approval of creditors an application can be made to the Inspector-General for approval of their remuneration.   The Inspector-General’s practice for assessing remuneration approval requests is set out in Inspector-General Practice Statement (IGPS) 15.

The bankrupt or a creditor may apply to the Inspector-General for a review of remuneration claimed by a trustee of a bankruptcy administration. The trustee may (at his or her own initiative or at the request of a creditor or bankrupt) apply to the Inspector-General for a review of a bill of costs for services supplied to the trustee by a third party. The Inspector-General’s practice for reviewing the remuneration of trustees and the costs of third party service providers is set out in Inspector-General Practice Statement (IGPS) 16.

Review of remuneration

The following form should be used if requesting a review of remuneration claimed by a trustee of a bankruptcy administration.

All requests for review should be sent to "The Business Manager, Regulation & Enforcement" in the state where the trustee operates.

Email to regulations.review [at] afsa.gov.au or post to your state's address.

Region

Postal address

For Qld, WA & NT

PO Box 10443, Adelaide Street, BRISBANE 4001

For Vic & Tas

GPO Box 2851, MELBOURNE 3001

For NSW, ACT & SA

GPO Box 548, SYDNEY 2001

Debt agreement administrators

The entitlement of debt agreement administrators to remuneration is set out in subsection 185C(3A) of the Act.  A debt agreement must provide that the total remuneration of the administrator is equal to a specified percentage of the total amount payable by the debtor under the agreement. This remuneration can be taken from payments as they are received.

The Official Trustee in Bankruptcy

The entitlement of the Official Trustee in Bankruptcy to remuneration is set out in section 163 and section 163A of the Act and in the Bankruptcy (Fees and Remuneration) Determination 2015.

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