Information about remuneration of registered and controlling trustees, debt agreement administrators and the Official Trustee.
Registered and controlling trustees
The entitlement of registered and controlling trustees to remuneration is set out in Division 60 of the Insolvency Practice Schedule (Bankruptcy) (which is Schedule 2 of the Bankruptcy Act 1966).
The statutory maximum default amount of remuneration to which these trustees are entitled can be found on the indexed amounts page. For trustees appointed during the 2020–21 financial year, the amount is $5,448. The trustee is entitled to recover up to this amount for work that has been necessarily and properly performed in a bankrupt estate, with the approval of creditors not required.
Where a trustee wishes to claim remuneration above the maximum default amount they need the approval of creditors. If creditors don’t approve remuneration, or if it is not practical to seek the approval of creditors, the trustee can apply to the Inspector-General to have their remuneration determined.
When seeking approval, the information the trustee has to provide to creditors and bankrupts is set out in Inspector-General Practice Direction (IGPD) 18 – Trustee remuneration notifications.
Review of remuneration
A bankrupt person or creditor may apply to the Inspector-General for a review of the trustee's remuneration in a bankrupt estate. The trustee may (at their own initiative or at the request of a creditor or bankrupt person) also 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 – Reviewing remuneration of trustees and costs of third party service providers.
The following forms must be used if requesting a review:
Completed forms can be emailed to PractitionerSurveillance@afsa.gov.au or posted to:
National Allocations Team
Enforcement and Practitioner Surveillance
PO Box 10443 Adelaide St
BRISBANE QLD 4001
Debt agreement administrators
The entitlement of debt agreement administrators to remuneration is set out in section 185Z of the Bankruptcy Act. Section 185C provides for a debt agreement proposal including the administrator's remuneration being 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 for its work administering bankrupt estates, debt agreements and personal insolvency agreements is contained in section 163 of the Bankruptcy Act and in the Bankruptcy (Fees and Remuneration) Determination 2015.
More information about the Official Trustee’s remuneration can be found on the Fees and charges page.