Earning income during bankruptcy
Simon is bankrupt and was unemployed until recently accepting a teaching position at a school, with income of $100,000 (after tax) a year.
Bankrupts are obligated to report all changes in income and employment to their trustee, so Simon ensured this was reported.
The trustee told Simon that due to now earning above the income threshold*, income contributions are payable, which is 50% of what is earned above the income threshold.
As Simon's after-tax income is $100,000 and he has 2 dependants, the income threshold is $91,589.23* (based on March 2025 thresholds), therefore the annual income contribution is around $4,205.
Simon's fortnightly after-tax pay is about $3,846.15, therefore compulsory income contributions are around $161.73 per fortnight.
* The income thresholds change twice a year and are different depending on how many dependants you have. You can find the latest thresholds at indexed amounts.
Note: These case studies do not constitute legal or financial advice. You should consider whether the options referred to in the case studies are appropriate for you, and seek advice if necessary, before taking any action.