Distribution of bankrupt estates and the National Panel of Registered Trustees

Official Trustee

Role of Official Trustee – default Trustee

The role of the Official Trustee (OT) within AFSA helps ensure there is appropriate oversight for insolvency administrations where a Registered Trustee (RT) has not been appointed.

The OT’s primary focus is on matters that are in the public interest and build confidence in the personal insolvency system – even if the administration may not result in a financial return to creditors or cover our administration costs.

If a person entering bankruptcy does not obtain the consent of a RT to act as their Trustee, their estate will be administered by the OT in the first instance.

Transfer of estates

OT offering estates to RTs via the National Panel of Registered Trustees

Where there are estates that an RT may be willing to administer, AFSA may offer these estates to the private sector.

The OT will assess which bankruptcies ought to be retained by the OT or offered to a RT via the National Panel of Registered Trustees.

This may include estates that are initially administered by the OT as no Consent to Act has been lodged. Further detail on the National Panel is outlined below.

RT transfer to the OT

There are occasions when it may be appropriate for a RT to transfer an estate to the OT and these requests will be considered on a case-by-case basis.

National Panel of Registered Trustees

What is it?

AFSA maintains a National Panel of Registered Trustees (the National Panel) to facilitate the efficient and timely distribution of bankrupt estates.

The National Panel comprises of qualified personal insolvency practitioners who are eligible to receive estate appointments transferred from the OT.

National Panel membership is voluntary but provides opportunities for RTs to access estates outside the normal referral channels.

From 1 July 2025 estates offered through the National Panel will be via s181A of the Bankruptcy Act 1966 only.

Gender diversity

AFSA is committed to taking steps towards enhancing gender diversity in the personal insolvency profession.

The National Panel provides an avenue for female registered trustees to get a valuable foot in the door of the personal insolvency industry and access to estates without relying on traditional referral networks.

On this basis, AFSA will direct a greater share of estates to female trustees, increasing the initial 20% target implemented in 2021 to 25% from 1 July 2025.

The target will be reviewed regularly to determine whether to increase that rate over time. This approach is in line with arrangements already in place to direct Commonwealth legal work to female counsel.

Principles for offering estates via the National Panel

While the OT’s decision to transfer an estate is specific to that estate’s circumstances, there are two overarching principles that support decision-making regarding what estates AFSA will offer to RTs to administer and what residual estates the OT will retain for possible investigation and administration. In practice, the principles will be applied at the start of the bankruptcy.

• Principle 1

The OT will investigate and administer estates where there is a public interest and to maintain stakeholder confidence in the insolvency system, even though the administration may not result in a financial return to creditors, nor cover the OT’s administration costs.

• Principle 2

Estates offered to RTs by the OT will focus on commercial viability and recoverability of assets.

Conditions of the National Panel

How to join the National Panel

• Submit an application to join national panel of registered trustees by email to RTnationaltransfers@afsa.gov.au.

Notification of appointments

When an estate is selected for offer of appointment to a RT:

• The RT is emailed a notification requesting that they login to their Online Services account to view the publicly available version of the Bankruptcy Form and provide their consent to act.
• The RT, or multiple RTs in the event of joint appointment, have one business day to confirm their capacity to administer the estate and that there is no conflict of interest.
• Where a registered trustee has consented to act as a joint trustee, the joint trustee must also consent to act as trustee by the expiry date for the appointment to take effect.
• When the appointment has taken effect, the RT will be notified by email and the documents relating to the estate will be available in the Online Services portal.

Decline offers under limited circumstances

RT’s may only decline the offer/proposal in limited circumstances, being if:

• there is a perceived or actual conflict of interest
• there are temporary resource issues that would hinder due administration of the estate
• they are unable to handle the estate due to its anticipated involvement (e.g. size, complexity or public interest issues in estate beyond their capacity

If an estate transfer is declined by a RT due to resourcing constraints the RT may request a period to remain inactive on the panel.

Remuneration should not exceed median industry rates

Remuneration charged to an estate offered to a RT by AFSA, should not exceed median industry hourly rates. An assessment of median rates is conducted against all staffing levels annually and communicated by email to panel members thereafter.

The *2022/23 median industry rates have been calculated as:

*These rates are exclusive of GST and effective from 30 July 2023. The 2022/23 rates will remain in effect until we publish further guidance.

Contact details

For more information please contact: RTnationaltransfers@afsa.gov.au.

Members of the Registered Trustee National Panel