Save Search

Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Bankruptcy (Estate Charges) Amendment Bill 2002

Bill home page  


Download WordDownload Word


Download PDFDownload PDF

 

 

2002

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

 

BANKRUPTCY (ESTATE CHARGES) AMENDMENT BILL 2002

 

 

 

 

 

EXPLANATORY MEMORANDUM

 

 

 

 

 

 

(Circulated by authority of the Attorney-General,

the Honourable Daryl Williams AM QC MP)

 

 

 

 

 

 

 

 

 



 

BANKRUPTCY (ESTATE CHARGES) AMENDMENT BILL 2002

 

Section 1 - General Outline

 

The Bankruptcy (Estate Charges) Amendment Bill 2002 (the Bill) is a short Bill that proposes to amend the Bankruptcy (Estate Charges) Act 1997 (the 1997 Act) to close a loophole by imposing the realisations charge and the interest charge on amounts received by solicitors who are controlling trustees and to amend the Bankruptcy (Estate Charges) Amendment Act 2001 (the 2001 Act) to enable the 2001 Act to commence. 

 

Financial Impact Statement

 

2          The Bill will result in a minor but unquantifiable increase in realisations charge and interest charge collections by the Commonwealth.

 



Section 2 - Notes on sections

 

Short Title

3          By proposed section 1, the Act will be cited as the Bankruptcy (Estate Charges) Amendment Act 2002 .

 

Commencement

4          In accordance with the table in proposed section 2, proposed sections 1 to 3, proposed item 11 of Schedule 1, and anything in the Bill not elsewhere covered in that table will commence on the day of Royal Assent.  Proposed Schedule 1 items 1 to 10, 12 and 13 will commence immediately after section 1 of the Bankruptcy (Estate Charge) Amendment Act 2001 commences. 

 

Schedule

5          Proposed section 3 is a drafting device to allow all the amendments proposed to be made to the Act to be set out in a Schedule.  The items in the Schedule will amend both the 1997 Act and the 2001 Act and will have effect according to their terms.  Notes on the proposed Schedule items, including those proposing application provisions, follow.

 

Section 3 - Schedule

 

Schedule 1—Amendments and Application Provisions

 

6          This schedule sets out all of the amendments proposed to be made to the Bankruptcy (Estate Charges) Act 1997 and the Bankruptcy (Estate Charges) Amendment Act 2001 .

 

Part 1—Amendments

 

Interest Charge and Realisations Charge

 

7          Schedule Items 1 to 10 all propose minor amendments to terms used in the 1997 Act.  These proposed changes will have the effect of imposing both the interest charge and the realisations charge on amounts received by solicitors who are controlling trustees.  The changes variously propose to replace references to ‘trustee’ and ‘trustee’s’ with references to ‘person’ or ‘person’s’, as the case requires.  The change of terminology is needed because the word ‘trustee’ in the 1997 Act takes its meaning from the Bankruptcy Act 1966 and means trustees registered under that Act and (as appropriate) the Official Trustee, but does not extend to solicitors who are controlling trustees.

 

8          Item 11 proposes to amend the commencement provision of the Bankruptcy (Estate Charges) Amendment Act 2001.  The existing commencement provision ties commencement of the 2001 Act to commencement of the Bankruptcy Legislation Amendment Act 2001.  The Bill for an Act of that name lapsed when the Parliament rose for the 2001 Federal election so, unless the commencement provision is amended, that provision cannot operate.  It now is proposed that the 2001 Act will commence immediately after the commencement of section 1 of the Bankruptcy (Estate Charges) Amendment Act 2002.  That section is proposed by the table in section 2 to commence on the day of Royal Assent.  

 

Part 2—Application provisions.

 

9          By item 12, Schedule 1 items 1, 2 and 3 will apply to interest paid, after the commencing time, into the account held by a person (including a solicitor who is a controlling trustee) for the purpose of section 169 of the Bankruptcy Act. 

 

10        By item 13, the amendments made by Schedule 1 items 4 to 9 and item 10 to impose the realisations charge on persons, including solicitors who are controlling trustees, will apply to amounts received by them after the commencing time.