Commonwealth Consolidated Acts

BANKRUPTCY ACT 1966 - SECT 128E

Scope

             (1)  This section applies in relation to a member of an eligible superannuation plan if the Official Receiver has reasonable grounds to believe that:

                     (a)  a transaction is void against the trustee of a bankrupt's estate under section 128B or 128C; and

                     (b)  either:

                              (i)  the whole or a part of the member's superannuation interest is attributable to the transaction; or

                             (ii)  the trustee of the bankrupt's estate has made an application for a section 139ZU order that relates to the transaction and the member's superannuation interest.

Giving of freezing notice

             (2)  The Official Receiver may, by written notice (a superannuation account-freezing notice ) given to the trustee of the eligible superannuation plan, direct the trustee of the plan not to:

                     (a)  cash or debit; or

                     (b)  permit the cashing, debiting, roll-over, transfer or forfeiture of;

the whole or any part of the superannuation interest except:

                     (c)  for the purposes of complying with a notice under section 139ZQ; or

                     (d)  for the purposes of complying with an order under section 139ZU; or

                     (e)  for the purposes of charging costs against, or debiting costs from, the superannuation interest; or

                      (f)  for the purposes of giving effect to a family law payment split; or

                     (g)  in accordance with the written consent of the Official Receiver given under section 128H; or

                     (h)  for the purposes of complying with an order under paragraph 128K(1)(b); or

                      (i)  for the purposes of complying with an order under subsection 139ZT(2); or

                      (j)  in such circumstances (if any) as are specified in the regulations.

             (3)  The superannuation account-freezing notice must set out the facts and circumstances because of which the Official Receiver considers that the Official Receiver has reasonable grounds to believe that:

                     (a)  the transaction is void against the trustee of the bankrupt's estate under section 128B or 128C; and

                     (b)  either:

                              (i)  the whole or a part of the member's superannuation interest is attributable to the transaction; or

                             (ii)  the trustee of the bankrupt's estate has made an application for a section 139ZU order that relates to the transaction and the member's superannuation interest.

When Official Receiver may give freezing notice

             (4)  The Official Receiver may give the superannuation account-freezing notice:

                     (a)  if the Official Trustee is the trustee of the bankrupt's estate--on the initiative of the Official Receiver; or

                     (b)  if a registered trustee is the trustee of the bankrupt's estate--on application by the registered trustee.

When freezing notice comes into force

             (5)  The superannuation account-freezing notice comes into force when the notice is given to the trustee of the eligible superannuation plan.