Explanatory Statement

Issued by the Authority of the Attorney-General and Minister for Justice

Explanatory Statement

Bankruptcy Act 1966

Bankruptcy Regulations (Amendment)

Subsection 315(1) of the Bankruptcy Act 1966 (the Act) provides that the GovernorGeneral may make regulations prescribing matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act. Subsection 315(2) describes particular matters in relation to which regulations may be made.

The Bankruptcy Regulations (Amendment) makes a number of amending regulations under the Act. By regulation 1.1, subregulations 18.1 and regulations 29 and 30 are taken to have commenced on 16 December 1996, the date the Bankruptcy Regulations commenced. As they confer a benefit, retrospective commencement does not contravene subsection 48(2) of the Acts Interpretation Act 1901.

By subregulation 1.2, subregulations 18.2, 35.2 and 38.3 and regulations 26, 32, 33, 34 and 40 commence on the commencement of the Bankruptcy (Estate Charges) Act 1997 (the Estate Charges Act). That Act, by Proclamation, commences on 14 April 1997. Subregulation 38.3 of the Bankruptcy Regulations (Amendment) is dependent on an amendment, by Schedule 1 of the Bankruptcy Amendment Act 1997, to subsection 315(2) of the Bankruptcy Act 1966. It might be argued that a subregulation which depends on that amendment cannot be made validly until that amendment commences. However, subsection 4(1) of the Acts Interpretation Act 1901 provides to the effect that, where an Act amends another Act so that the other Act as amended would confer power to make regulations, the power so conferred may be exercised, before the amending Act comes into operation, as if it had come into operation. Therefore, subregulation 38.3 has been made validly before the commencement of the amendment to subsection 315(2) of the Bankruptcy Act 1966.

All but one of the amending provisions mentioned in subregulation 1.2 are made under existing provisions of the Bankruptcy Act 1966 and, under the Proclamation fixing the date of the commencement of the Bankruptcy (Estate Charges) Act 1997 as 14 April 1997, commence on that date.

The remaining regulations commence on Gazettal: see section 48 of the Acts Interpretation Act 1901.

Details of the proposed regulations are set out in the Attachment.

Introductory note

References to 'the Bankruptcy Regulations (Amendment)' or to 'the Amendment' are references to the amending regulations. A reference to the Bankruptcy Regulations is a reference to the regulations which these regulations amend and which comprise Statutory Rules No. 263 of 1996 as amended by Statutory Rules No. 278 of 1996.

Regulation 1 - Commencement

This regulation provides for when the Amendment is to commence in respect of which refer to pages 1 and 2 of this Statement.

Regulation 2 - Amendment

This regulation provides that the Bankruptcy Regulations are amended as set out in the Amendment.

Regulation 3 - amendment of regulation 2.01 of the Bankruptcy Regulations (Section 20J of the Act - Prescribed rate of interest on moneys in Common Fund)

The Amendment corrects a reference in the note to regulation 2.01 of the Bankruptcy Regulations so that the note cites subsections 20J(2) and (4) of the Bankruptcy Act 1966 (the Act) as authorising the making of regulations to prescribe the rate of interest on moneys in the Common Fund. Before the Amendment, the incorrect reference was to subsection 20J(3).

Regulation 4 - insertion of new regulation 4.02A (Service of bankruptcy notices) into the Bankruptcy Regulations

New regulation 4.02A requires a bankruptcy notice to be served within 6 months of its date of issue but also allows the Official Receiver to extend that time limit. The decision of the Official Receiver to extend the time limit may be made at any time including after the end of the 6 months time limit- The regulation further provides to the effect that a bankruptcy notice issued before 16 December 1996, and which could have been served validly immediately before the Amendment is Gazetted, may be served within the period of 3 months commencing on that Gazettal.

Regulation 5 - amendment of regulation 4.05 of the Bankruptcy Regulations (Copy of petition, etc to be given to Official Receiver)

The Amendment specifies that the 3 days within which a creditor must give a copy of a creditor's petition to the Official Receiver are working days.

The Amendment adds new subregulation 4.05(2). Subsection 52(1A) of the Act provides that, if the Court makes a sequestration order, the creditor who obtained the order must give a copy of it to the Official Receiver for the Bankruptcy District in which the order was made. Subregulation 4.05(2) imposes a time Emit of 2 working days within which the copy must be provided to the Official Receiver.

Regulation 6 - amendment of regulation 4.11 of the Bankruptcy Regulations (Prescribed information to be supplied by the Official Receiver to debtor)

The Amendment extends the obligation, under subregulation 4.11(3), to apply in respect of a debt agreement proposal under Part IX of the Act. Accordingly, the Official Receiver is prevented from accepting a debtor's petition - or, now, a Part IX debt agreement proposal -unless the debtor has given to the Official Receiver a signed acknowledgment that the debtor has received and read the prescribed information. The prescribed information is set out in subregulation 4.11 (1). The debt agreement mechanism, a low cost alternative to bankruptcy and other insolvency procedures allowed for under the Act was introduced into the Act with effect on and after 16 December 1996.

Regulation 7 - amendment of regulation 4.17 of the Bankruptcy Regulations (Inspection and copying of statement of affairs, composition or scheme of arrangement)

Regulation 4.17 is amended to remove its former, but redundant, application in respect of a statement of affairs filed by a bankrupt under paragraphs 54(1)(a) or 54(2)(a) of the Act. Subsection 54(4) of the Act provides for the inspection of statements of affairs. A similar provision in regulation 4.17 of the Bankruptcy Regulations is therefore deleted by the Amendment.

Regulation 8 - amendment of regulation 6.02 of the Bankruptcy Regulations (Maximum amount payable to employee)

Section 109 of the Act specifies the priority payments that the trustee must make from the property of the bankrupt before applying the proceeds of the property in making any other payments. Broadly put, paragraph 109(1)(e) specifies one such priority payment as amounts owed, up to a statutory threshold specified in regulation 6.02, by the bankrupt to each of his or her employees. Paragraph 6.02(1)(a) is amended to make it clear that the statutory threshold of $3,100 applies in respect of bankruptcies current in the period 16 December 1996 to 30 June 1997 and which had commenced prior to 16 December 1996, as well as to bankruptcies that commenced in the period 16 December 1996 to 30 June 1997.

Regulation 9 - amendment of regulation 6.03 of the Bankruptcy Regulations (Household property)

The Amendment corrects 2 typographical errors.

Regulation 10 - amendment of regulation 6.04 of the Bankruptcy Regulations (Property divisible among creditors - prescribed amounts)

The amendment of subregulation 6.04(1) corrects a typographical error. The amendments made to paragraphs 6.04(1)(a) and 6.04(3)(a) are to the same effect as the amendment made, by regulation 8 to regulation 4.02A, but apply in relation to the maximum value of property that may be retained by a bankrupt for use to earn income by personal exertion, ie, $2,600.

Regulation 11 - amendment of regulation 6.16 of the Bankruptcy Regulations (Reasons for application to Official Receiver to vary contributions)

The Amendment corrects a typographical error.

Regulation 12 - amendment of regulation 7.01 of the Bankruptcy Regulations (Trustee to inform the Official Receiver of return of bankrupt to Australia)

The Amendment makes a drafting alteration to make it clearer that the date referred to in subparagraph 7.01(2)(b)(ii) of the Bankruptcy Regulations is the date on which the bankrupt returned to Australia. There is no change to the substance of the regulation.

Regulation 13 - amendment of regulation 8.03 of the Bankruptcy Regulations (Subsection 155C(2) of the Act - prescribed particulars of applicant for registration as a trustee)

Subsection 155C(1) of the Act requires the Inspector-General to register an applicant trustee upon certain things occurring. Subsection 155C(2) then specifies that the InspectorGeneral registers the applicant by entering, in the National Personal Insolvency Index, the prescribed details about the applicant. Regulation 8.03 sets out the prescribed particulars, one of which is the address of the applicant. Regulation 8.03 is amended to expand the address particulars to include the postal address (where applicable) and the telephone number.

The Amendment also removes one of the previously prescribed details, namely the applicant's occupation, and substitutes a requirement that a statement or summary of any conditions applying to the person's entitlement to practise as a registered trustee be included in the National Personal Insolvency Index.

Regulation 14 - insertion of new Division 1A of Part 8 into the Bankruptcy Regulations -Change in trustee's particulars

New Division 1A, headed 'Change in trustee's particulars', comprises regulation 8.04A (Trustee to notify change in particulars) which requires a trustee promptly to give notice in writing to the Official Receiver of any change, in relation to the trustee, of the particulars specified in paragraph 8.03(a), (b) or (c) of the Bankruptcy Regulations.

Failure to comply with this subregulation is an offence attracting a penalty of 1 penalty unit.

Regulation 15 - amendment of Division 3 of Part 8 of the Bankruptcy Regulations

Division 3 of Part 8, formerly headed 'Appointment as trustee of estate' has been renamed 'Consent to act, and appointment, as trustee of estate' comprising regulations 8.06 (Consent to act as trustee - subsection 156A(1) of the Act) and 8.06A. Former regulation 8.06 is renumbered regulation 8.06A (Certificate of appointment under subsection 156A(3) of the Act) by the Amendment.

New subregulation 8.06(1) requires a trustee, who signs an instrument under subsection 156A(1) of the Act in relation to a debtor, to file the instrument with the Official Receiver as soon as possible, but not later than 2 working days after the day on which the Court makes a sequestration order against the debtor's state. Section 156A of the Act effectively requires a registered trustee, who consents to act as the trustee of the estate of a bankrupt, to file the instrument of consent with the Official Receiver.

The Amendment also adds new subregulation 8.06(2) which provides to the effect that a certificate under subsection 156A(6) of the Act, or under regulation 8.06A, may be given in the form of an extract of the National Personal Insolvency Index setting out the matters required to be shown by the certificate. Subsection 156A(6) of the Act provides that, where the Court appoints a person as trustee under subsection 156A(5), the Official Receiver must issue to the person a certificate of appointment. Subsection 156A(5) of the Act empowers the Court to remove a trustee from office and appoint another.

The Amendment renumbers regulation 8.06 as regulation 8.06A, amends the heading and changes, to a discretionary option, the former mandatory requirement in regulation 8.06 for the Official Receiver to issue a certificate of appointment to a registered trustee who becomes, under subsection 156A(3), the trustee of an estate or of joint and separate estates. The certificates therefore are to be issued only when required.

Regulation 16 - amendment of heading to Division 4 of Part 8 of the Bankruptcy Regulations

The Amendment corrects a typographical error.

Regulation 17 - amendment of regulation 8.08 of the Bankruptcy Regulations (Other remuneration - prescribed rate under subsection 162(4) of the Act)

In previously prescribing the 1996 scale as the yardstick for registered trustee remuneration when it has not been set by creditors, it was not intended to allow work done in, say, 1993, to be remunerated by reference to the 1996 Insolvency Practitioners Association of Australia (IPAA) hourly rate. The Amendment therefore revises paragraph 8.08(a) to make clear that the IPAA Guide to Hourly Rates referred to is the rate applicable to the work to be remunerated, rather than, as previously provided, the rate in the November 1996 Guide.

Regulation 18 - amendment of regulation 8.14A of the Bankruptcy Regulations (Prescribed times for giving accounts - section 175 of the Act)

Section 175 of the Act requires the trustee of the estate of a bankrupt to give the Official Receiver certain accounts and information at the times prescribed by the regulations. Regulation 8.14A of the Bankruptcy Regulations specifies those times. Former paragraph 8.14A(a) specified them as being the last day of the period of 6 months commencing when the trustee commenced to act as trustee and the last day of each succeeding period of 6 months. The Amendment extends those times by 28 days, thus giving the trustee a reasonable time to prepare the accounts before having to lodge them. This is consistent with the 28 days allowed in paragraph 8.14A(b) of the Bankruptcy Regulations.

The repeal of Division 5A of Part 8 is effected by subregulation 18.2 of the Amendment, but with effect only from the commencement of the Bankruptcy (Estate Charges) Act 1997. A note states that section 50 of the Acts Interpretation Act 1901 sets out the circumstances in which, despite their repeal, regulations can continue to have application in respect of certain matters.

Regulation 19 - amendment of regulation 10.10 of the Bankruptcy Regulations (Sequestration order, or order avoiding a deed or composition - notice to Official Receiver)

The Amendment makes a clear English drafting alteration without changing the legal effect of the provision.

Regulation 20 - amendment of regulation 13.03 of the Bankruptcy Regulations (What information is to be entered on the Index?)

Regulation 13.03 of the Bankruptcy Regulations sets out the particulars that must be entered in the National Personal Insolvency Index. A number of changes to regulation 13.03 are made by the Amendment.

Paragraph 13.03(1)(a) is amended by subregulation 20.1 to provide that information about creditors' petitions, and of the kind specified in Schedule 8, must be entered on the National Personal Insolvency Index.

One of the particulars to be entered on the National Personal Insolvency Index is the address of the registered trustee or controlling trustee. Subparagraph 13.03(1)(c)(ii) is amended by subregulation 20.2 to extend this to include the postal address (where applicable) and the telephone number.

Subparagraph 13.03(1)(c)(iii) is amended by subregulation 20.3 to remove one of the particulars to be entered on the National Personal Insolvency Index, namely, the trustee's occupation. The Amendment substitutes a requirement that a statement or summary of any conditions applying to the person's entitlement to practise as a registered trustee be included in the National Personal Insolvency Index.

By subregulation 20.4, the Amendment adds new paragraph 13.03(1)(g), requiring there to be entered, on the National Personal Insolvency Index, information concerning a creditor's petition including details of any orders made in relation to the petition or the withdrawal of the petition.

By subregulation 20.5, a typographical error in paragraph 13.03(6)(a) is corrected.

Subregulation 13.03(6) sets out the circumstances when the Official Receiver must correct an entry on the National Personal Insolvency Index. They include instances where the Official Receiver considers that the entry, in any particular, is inaccurate or misleading. By subregulation 20.6, the Amendment adds a further instance, ie, if the entry is out of date.

Regulation 21 - amendment of regulation 13.06 of the Bankruptcy Regulations (Inspection of the Index)

Subregulation 13.06(1) requires prior payment of any applicable fee before a person can access the National Personal Insolvency Index. This does not allow for commercial payment arrangements to be entered into with information brokers, whose access to the Index is to be on a bulk basis. The subregulation is amended to make its operation subject to new subregulation 13.06(1A).

New paragraph 13.06(1A)(a) provides that prior payment is not required from a person accessing the National Personal Insolvency Index if the person has an alternative arrangement, eg, payment by bulk billing, with the Inspector-General concerning the mode of payment.

Paragraph 13.06(1)(b) allows a person, on payment of any applicable fee, to take an extract of information entered on the National Personal Insolvency Index. New paragraph 13.06(1A)(b) makes it clear that to 'take an extract' extends to making notes of information shown on a computer screen.

Paragraph 13.06(1)(c) allows a person, on payment of any applicable fee, to obtain a copy of the extract from the National Personal Insolvency Index. New paragraph 13.06(1A)(c) makes it clear that this extends to making, or obtaining, a print-out on paper of an extract stored on computer.

Regulation 22 - amendment of regulation 13.07 of the Bankruptcy Regulations (Extract, etc of the Index to be admissible in evidence)

The former heading to Regulation 13.07 ('Copy of Extract to be Evidence') becomes,. by virtue of the Amendment, ('Extract, etc of the Index to be admissible in evidence').

Subregulation 13.07(1) of the Bankruptcy Regulations allows a copy of a document to be proof of information held by the National Personal Insolvency Index that is stated in it. The subregulation is amended to extend its application to the document itself and. not just to a copy of the document.

Subregulation 13.07(2) of the Bankruptcy Regulations is amended to correct a typographical error and to extend its application to a copy of the document and not just to the document itself. Subregulation 13.07(2) describes documents (or copies) that are admissible in evidence, for the purposes of subregulation 13.07(1), as proof of the information on the National Personal Insolvency Index.

Regulation 23 - insertion of new regulation 13.11 (Inspector-General may provide information from the Index)

The Amendment permits the Inspector-General to provide to a person information constituting a subset of the National Personal Insolvency Index. This will. allow the Inspector-General to provide, for example to specialist users, information comprising a part only of the information on the Index. Conditions may apply to the use of information so provided.

Regulation 24 - amendment of regulation 15.13 of the Bankruptcy Regulations (Applicant interviews)

The Amendment corrects 2 erroneous cross references to subsections of the Act.

Regulation 25 - amendment of regulation 15.14 of the Bankruptcy Regulations (Involuntary termination of registration - interview)

The Amendment corrects a typographical error.

Regulation 26 - insertion of new Part 15A - Provisions Relating to the Bankruptcy Charge Acts

The Amendment provides for the insertion of a new Part 15A, comprising new regulations as follows.

New regulation 15A.01 (Interpretation)

This regulation provides for a number of definitions for the purposes of new Part 15A.

New regulation 15A.02 (Mode of payment)

This regulation specifies the mode by which payment of a charge or penalty may be made to the Inspector-General.

New regulation 15A.03 (Overpayments to be refunded or offset)

This regulation provides for the treatment of an overpayment by a trustee of a charge or penalty. Overpayments may be refunded to the trustee or, unless the trustee by notice in writing to the Inspector-General directs otherwise, offset against an amount of charge or penalty payable by the trustee.

New regulation 15A.04 (Information to accompany payment of interest charge)

By this proposed regulation, the Inspector-General is able to require persons, other than the Official Trustee, remitting a payment of interest charge to provide information, in the approved form, about the payment. The requirement applies whether physical or nonphysical payment methods were used.

New regulation 15A.05 (Information to accompany payment of realisations charge)

By this proposed regulation, the Inspector-General is able to require persons, other than the Official Trustee, remitting a payment of realisations charge to provide information, in the approved form, about the payment. The requirement would apply whether physical or non-physical payment methods were used.

New regulation 15A.06 (Format for information given under regulation 15A.04 or 15A.05)

This regulation provides that a trustee, other than the Official Trustee, who makes a payment under regulation 16.14 must lodge with the payment a statement in the approved form.

New regulation 15A.07 (Lodgment of request for remission)

This regulation provides that a request by a trustee for remission of a charge or penalty must be in writing and lodged with the Official Receiver for the Bankruptcy District in which the trustee carries on business.

Regulation 27 - amendment of regulation 16.02 of the Bankruptcy Regulations (Documents for the Inspector-General, the Official Receiver or the Official Trustee)

The Amendment corrects a typographical error.

Regulation 28 - amendment of regulation 16.07 of the Bankruptcy Regulations (Fees payable to the Official Trustee)

Regulation 16.07 of the Bankruptcy Regulations provides for a fee to be payable to the Official Trustee in specified circumstances. New paragraph 16.07(3)(aa) provides that the circumstances are to include work performed in relation to Division 6 of Part IV of the Act, ie, work in relation to a composition or a scheme of arrangement under section 73 of the Act. The fee is payable from amounts realised in relation to the composition or scheme of arrangement.

Subregulation 16.07(8) of the Bankruptcy Regulations provides for a fee to be payable to the Official Trustee in specified circumstances. They were intended to include circumstances where, under the terms of a debt agreement made under section 185H of the Act, the Official Trustee administers the debt agreement or, under that agreement, administers the debtor's property. In its unamended form, subregulation 16.07(8) could have been interpreted as not applying to those circumstances. The subregulation therefore is amended to make it clear that a fee is payable in respect of the Official Trustee's action in administering a debt agreement, or property under a debt agreement.

Regulation 29 - amendment of subregulation 16.08(2) of the Bankruptcy Regulations ("Prescribed amount" - restriction on amount of fee payable)

By this regulation, an incorrect reference to Subdivision C is corrected to a reference to Subdivision B (of Division 2 of Part 16 of the Bankruptcy Regulations). The effect of this change is to reduce the fees payable to the Official Trustee, thus benefiting creditors.

Regulation 30 - amendment of regulation 16.11 of the Bankruptcy Regulations (Application to the AAT)

The Amendment corrects an erroneous cross reference to a regulation number.

Regulation 31 - amendment of regulation 16.12 of the Bankruptcy Regulations (Prescribed fees of Official Receiver and fees payable on taxation

The Amendment inserts new subregulation 16.12(4) into the Bankruptcy Regulations.

The Act requires a person, other than a creditor, to pay the fee prescribed by the regulations for inspecting: a bankrupt's statement of affairs (subsection 54(4)); a statement of affairs accompanying a debtor's petition (subsection 55(9)); a statement of affairs in connection with a debtor's petition against a partnership (subsection 56G(2)); a statement of affairs that accompanies a petition presented by joint debtors (subsection 57(11)); and the notes taken down by the Court, the Registrar or the magistrate in proceedings, involving the discovery of a bankrupt's property, under section 81 of the Act or the transcript of those proceedings (paragraph 81(17)(b)).

The Amendment prescribes the inspection fee for each of the above inspections as $20. The amendment of subregulation 16.12(4) was made in view of doubts that the inspection fee in item 5 of Schedule 9 of the Bankruptcy Regulations could apply.

Regulation 32 - amendment of regulation 16.14 of the Bankruptcy Regulations (Fees payable by the trustee on payment of dividends, etc)

The Amendment omits subregulation 16.14(1) and substitutes. new subregulations 16.14(1) and (1A), but makes them subject to regulation 16.15. The effect of new subregulation 16.14(1) is that a registered trustee paying an interim or final dividend is required to pay the appropriate fee in accordance with regulation 16.14. The effect of new subregulation 16.14(1A) is that the Official Trustee is required to pay the appropriate fee, in accordance with regulation 16.14, when paying an interim or final dividend, or upon ceasing to be the trustee of the estate. The reach of these amendments is restricted by regulation 16.15 of the Bankruptcy Regulations.

The Amendment also corrects 3 typographical errors or omissions.

Regulation 33 - omission and substitution of regulation 16.15 of the Bankruptcy Regulations (Application of regulation 16.14)

The Amendment omits regulation 16.15 (Fees payable by Official Trustee), as its subject matter is incorporated into amended regulation 16.14, and substitutes a new regulation 16.15 headed 'Application of regulation 16.14'. The new regulation provides to the effect that a fee is payable under amended regulation 16.14 only where, on or before 31 October 1996, a prescribed amount was received by the trustee and, after that date, either a dividend was paid or the Official Trustee ceases to act as trustee of the estate. This amendment ensures that the 3% fee continues to be payable on those particular prescribed amounts, being amounts to which neither the 8% realisations charge nor the interest charge applies.

Regulation 34 - amendment of regulation 16.17 of the Bankruptcy Regulations (trustee's account - prescribed form)

The Amendment omits the prescription of Form 2. The filing of estate accounts, by trustees using Form 2 for the purposes of paragraph 175(1)(a) of the Act is redundant with effect from gazettal of the Amendment. A system of estate account audits by the InspectorGeneral's staff replaces the filing of accounts.

Regulation 35 - Schedule 1 (Forms)

The Amendment substitutes a new Form 1 (Bankruptcy Notice) as set out in the Schedule to the Amendment. The previous form of notice has been revised to delete one line of the Schedule in the notice. The opportunity also has been taken to revise the notice layout to make it easier to understand. The Amendment also omits redundant Form 2.

Regulation 36 - amendment of Schedule 4 of the Bankruptcy Regulations (Modifications of the Fringe Benefits Tax Assessment Act 1986)

The Amendment corrects 2 drafting errors.

Regulation 37 - amendment of Schedule 8 of the Bankruptcy Regulations (Information in the National Personal Insolvency Index)

The amendment of item 2 of Schedule 8 requires a creditor's petition and verifying affidavit to be provided to the Official Receiver within 3 working days. In error, the item previously set no time limit. The 3 working day limit is consistent with the limit in regulation 4.05 of the Bankruptcy Regulations.

Regulation 37.2 corrects a typographical error in item 9 of Schedule 8.

Regulation 38 - amendment of Schedule 9 of the Bankruptcy Regulations (Official Receiver's fees)

The Amendment makes it clear, by subregulation 38.1, that the fee prescribed in item 2 of Schedule 9 is payable in respect of the issue of, rather than on the application for the issue of, a bankruptcy notice.

The Amendment also adds 2 new items, item 6 and 7, to Schedule 9 of the Bankruptcy Regulations, regulation 16.04 of which provides that the fees specified in Schedule 9 are payable in respect of the matters in relation to which they are so specified. New item 6 of Schedule 9 specifies a $20 fee for the inspection or copying of a composition or scheme of arrangement that has been accepted under subsection 73(4) of the Act (except in the case of a person who states in writing that he or she is a creditor of the bankrupt). New item 7 of Schedule 9 provides for a fee of $15 for inspecting or searching microfiche records of the Federal Court relating to bankruptcy matters. Those microfiche records have been, or are to be, transferred to the Official Receivers by Federal Court registry staff.

Regulation 39 - amendment of Schedule 10 of the Bankruptcy Regulations (Official Trustee's fees)

The Amendment corrects a typographical error.

Regulation 40 -Transitional

The Amendment provides that amounts paid, under Division 3 of Part 16 of the Bankruptcy Regulations in respect of and estate or debtor, may be offset against charge payable under Part 3 of the Bankruptcy (Estate Charges) Act 1997 on estate receipts during the charge period commencing 1 November 1996. That period coincides with that to which Division 3 of Part 16 applies. The amending regulation ensures that, in calculating charge payable, appropriate account is taken of amounts paid under Division 3 of Part 16.

Schedule

Subsection 41(2) of the Bankruptcy Act 1966 provides to the effect that a Bankruptcy Notice must be in the form prescribed by the Bankruptcy Regulations. Form 1 (the Bankruptcy Notice) is the prescribed form. Regulation 35 of the Amendment refers to the Schedule to the Amendment. The Schedule comprises new Form 1 of the Bankruptcy Regulations.