Bankruptcy Regulations 2021

SCHEDULE 2 - MODIFICATIONS OF THE FBTA ACT  

Note:

10   At the end of section 31  
Add:

(2)
For the purposes of this section, " deducted home consumption expenditure " referred to in the definition of exempt food component in section 136 is to be taken to be:

(a) in relation to a person of the age of 12 years or over - $42; and

(b) in relation to a person under the age of 12 years - $21.

Example: Calculation of the value of a living-away-from-home allowance .

Assume that a bankrupt living away from their family is given a living-away-from-home allowance of $220 a week. Of this amount, $100 represents reasonable compensation for the costs of accommodation (i.e. the " exempt accommodation component " is $100), and $80 represents reasonable compensation for the cost of food.

The remaining $40 is compensation for the disadvantage of living away from home in a town where facilities that would be available at home are not available.

Under subsection 31(2) , the exempt food component is $80 minus $42 (i.e. the compensation for increased food cost less the deducted home consumption expenditure). The value of the benefit is:

$200 − $100 − ($80 − $42) = $62