2004-2005-2006

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

Bankruptcy Legislation Amendment (Anti-avoidance) Bill 2005

 

 

(Government)

(1)     Schedule 1, item 6, page 3 (line 31) to page 4 (line 5), omit the item, substitute:

6  At the end of subsection 120(1)

Add:

Note:          For the application of this section where consideration is given to a third party rather than the transferor, see section 121A.

[consideration given to third party]

(2)     Schedule 1, item 9, page 4 (lines 31 and 32), omit the item.

[consideration given to third party]

(3)     Schedule 1, item 11, page 5 (lines 6 and 7), omit the item, substitute:

11  At the end of subsection 121(1)

Add:

Note:          For the application of this section where consideration is given to a third party rather than the transferor, see section 121A.

[consideration given to third party]

(4)     Schedule 1, item 14, page 5 (lines 22 and 23), omit the item.

[consideration given to third party]

(5)     Schedule 1, page 5 (after line 29), after item 15, insert:

15A  After section 121

Insert:

121A   Transactions where consideration given to a third party

             (1)  This section applies if:

                     (a)  a person who later becomes a bankrupt (the transferor ) transfers property to another person (the transferee ); and

                     (b)  the transferee gives some or all of the consideration for the transfer to a person (a third party ) other than the transferor.

             (2)  Sections 120 and 121 apply as if the giving of the consideration to the third party were a transfer by the transferor of the property constituting the consideration.

             (3)  If the giving of the consideration to the third party is void against the trustee in the transferor’s bankruptcy under section 120 or 121, the trustee has the same rights to recover the property constituting the consideration as the trustee would have if the giving of the consideration had actually been a transfer by the transferor of the property constituting the consideration.

[consideration given to third party]