Commonwealth Numbered Acts

BANKRUPTCY LEGISLATION AMENDMENT ACT 1996 No. 44, 1996 - SCHEDULE 1

Schedule 1-Amendment of various Acts Part 1-Amendments
Administrative Decisions (Judicial Review) Act 1977 1 Paragraph 9(4)(a)
Repeal the paragraph. Bankruptcy Act 1966 2 Subsection 5(1)
Insert:
approved form means a form approved by the Inspector-General. 3 Subsection
5(1)
Insert:
creditor, in relation to a liability under a maintenance order, includes the
Child Support Registrar referred to in the Child
Support (Registration and Collection) Act 1988. 4 Subsection 5(1)
Insert:
debt agreement means an agreement under section 185H resulting from the
acceptance of a debt agreement proposal. 5 Subsection 5(1)
Insert:
debt agreement proposal means a written proposal referred to in subsection
185C(1). 6 Subsection 5(1) (definition of Deputy Registrar)
Repeal the definition. 7 Subsection 5(1) (definition of examinable matter)
Repeal the definition. 8 Subsection 5(1) (definition of maintenance order)
Repeal the definition, substitute:
maintenance order means:

   (a)  an order relating to the maintenance of a person, including an order
        relating to the payment of arrears of maintenance, that is made or
        registered under a law of the Commonwealth or of a State or Territory
        of the Commonwealth; or

   (b)  an assessment made under the Child Support (Assessment) Act 1989. 9
        Subsection 5(1)
Insert:
National Personal Insolvency Index means the Index of that name established
under the regulations. 10 Subsection 5(1) (definition of prescribed)
Repeal the definition. 11 Subsection 5(1) (definition of Registrar)
Repeal the definition, substitute:
Registrar means the Registrar, a Deputy Registrar, a District Registrar or a
Deputy District Registrar of the Federal Court. 12 Subsection 5(1) (definition
of resolution)
After "personally", insert ", by telephone". 13 Subsection 5(1) (definition of
special resolution)
After "personally", insert ", by telephone". 14 Subsection 5(1) (definition of
State Court)
Repeal the definition. 15 Subsection 5(1) (definition of the date of the
bankruptcy)
Omit "56", substitute "56E". 16 Subsection 5(1)
Insert:
the Official Receiver:

   (a)  in relation to a matter referred to in section 5AA, means the Official
        Receiver for the District in which the matter originated, as
        determined under section 5AA; and

   (b)  in any other case, means any Official Receiver. 17 Subsection 5(1)
        (definition of the repealed Act)
Repeal the definition. 18 Subsection 5(1) (definition of the rules)
Repeal the definition. 19 Subsection 5(1) (definition of this Act)
Omit "the rules and". 20 Subsections 5(2) and (3)
Repeal the subsections, substitute:

(2) A person is solvent if, and only if, the person is able to pay all the
person's debts, as and when they become due and payable.

(3) A person who is not solvent is insolvent. 21 After section 5
Insert: 5AA Place of origin of bankruptcy and insolvency matters

(1) This section identifies the place of origin of each of the matters set out
in column 2 of the table. The place of origin of each matter is worked out
using column 3 of the table. Place of origin of bankruptcy and insolvency
matters
Matter      Place of origin
1 Bankruptcy that resulted from acceptance of a debtor's petition
The District in which the debtor's petition was accepted 2 Any other
bankruptcy
The District in which the sequestration order was made 3 Control of a debtor's
property under section 50
The District in which the Court made an order directing
a trustee to take control of the debtor's property 4 Scheme of arrangement or
composition under Division 6 of Part IV
The District in which there originated the bankruptcy
that was annulled under section 74 on acceptance of the
proposal for the scheme or composition 5 Matter relating to a debt agreement
proposal
The District in which the debt agreement proposal was
accepted for processing 6 Part X administration
The District in which the Official Receiver was given a
copy of the authority under section 188 that relates to
the administration 7 Administration under Part XI
The District in which the Court made the order for the
administration

(2) For the purposes of item 6 of the table, an authority under section 188
relates to a deed of assignment, a deed of arrangement or a composition if a
special resolution relating to the deed or composition was passed at a meeting
of creditors called under the authority.

(3) In this section: matter relating to a debt agreement proposal includes:

   (a)  a debt agreement; and

   (b)  an activity required or permitted by a debt agreement. Part X
        administration means:

   (a)  an activity that a controlling trustee may or must carry out after
        consenting to exercise powers given by an authority under section 188
        (including control of a debtor's property under Division 2 of Part X);
        or

   (b)  a deed of assignment under Part X; or

   (c)  a deed of arrangement under Part X; or

   (d)  a composition under Part X. 22 Section 5B
Omit ", and only if,". 23 At the end of paragraphs 5B(a) to (h)
Add "or". 24 At the end of section 5B
Add:

(2) For the purposes of this Act, a company is also associated with a person
if the company:

   (a)  holds property jointly with the person; or

   (b)  is dealing with the person's property as an agent for the person; or

   (c)  is a trustee of a trust under which the person is capable of
        benefiting; or

   (d)  acquires or disposes of property as a result of dealing with the
        person.

(3) The circumstances set out in subsections (1) and (2) are the only
circumstances in which a company is associated with a person for the purposes
of this Act. 25 Section 5C
Omit ", and only if,". 26 Paragraph 5C(a)
Repeal the paragraph, substitute:

   (a)  holds property jointly with the associate; or 27 At the end of
        paragraph 5C(b)
Add "or". 28 After paragraph 5C(b)
Insert:

   (ba) can benefit under a trust of which the associate is a trustee; or 29
        At the end of paragraphs 5C(c) and (d)
Add "or". 30 After paragraph 5C(d)
Insert:

   (da) is a principal for whom the associate acts as an agent; or 31 At the
        end of paragraphs 5C(e) and (f)
Add "or". 32 At the end of section 5C
Add:

(2) A natural person (the associate) is also associated with another person if
the associate has acquired or disposed of property as a result of dealing with
the other person.

(3) The circumstances set out in subsections (1) and (2) are the only
circumstances in which a natural person is associated with another person for
the purposes of this Act. 33 Subsection 6A(1)
Omit "and paragraphs 55(2)(b), 56(2)(a) and (b), 56(13)(a) and (b) and
57(2)(a) and (b)", substitute ", paragraphs 55(2)(b), 56B(3)(a) and (b),
56F(1)(a) and (b), 57(2)(a) and (b) and sections 185D and 188A". Note: The
heading to section 6A is replaced by the heading "Statement of affairs for
purposes other than Part XI". 34 Paragraph 6A(2)(b)
Repeal the paragraph. 35 Paragraph 6A(3)(a)
Omit "who was a bankrupt when the statement was filed, or has since become a
bankrupt,". 36 Subsection 6A(3)
Omit "the bankrupt" (wherever occurring), substitute "the person". 37
Subsection 6A(4)
Repeal the subsection. 38 Subsection 6B(1)
Omit "subparagraph 188(2)(c)(i),". Note: The heading to section 6B is altered
by omitting "Part X or XI" and substituting "Part XI". 39 Paragraph 6B(2)(a)
Repeal the paragraph, substitute:

   (a)  is in a form that has been:

        (i)    approved by the Inspector-General for the purposes of the
               provision under which the statement is made; and

        (ii)   published in the Gazette; and 40 At the end of section 6B
Add:

(3) If the trustee administering the estate of a deceased person under Part XI
has reasonable grounds to suspect that:

   (a)  any particulars set out in a statement of affairs that was filed by a
        person under subsection 246(1) or 247(1) are false or misleading in a
        material respect; or

   (b)  any material particulars have been omitted from that statement; the
        trustee may give the person a written notice requiring the person to
        provide specified information or books within a specified period of at
        least 14 days to enable the trustee to decide whether the particulars
        set out in the statement are correct. 41 Subsection 7(1)
Omit "married women,". 42 Subsection 7(3)
Omit "the prescribed modifications (if any)", substitute "any modifications
prescribed by the regulations". 43 Subsection 11(2)
Repeal the subsection, substitute:

(2) The Inspector-General has:

   (a)  the general administration of this Act; and

   (b)  the other powers and other functions conferred or imposed on him or
        her by this Act.

(3) The Inspector-General may exercise any of the powers (including the power
under section 18), and perform any of the functions, of an Official Receiver,
in the same way as the Official Receiver.

(4) The Inspector-General may by signed instrument delegate to an officer of
the Department all or any of the powers and functions of the Inspector-General
under this Act. 44 At the end of paragraph 12(1)(a)
Add "and". 45 At the end of subparagraphs 12(1)(b)(i), (ii) and (iii)
Add "or". 46 At the end of paragraph 12(1)(b)
Add:
or (vi) property in relation to which the trustee is the controlling trustee
under an authority given under section 188; and 47 At the end of subparagraph
12(1)(ba)(i)
Add "or". 48 After subparagraph 12(1)(ba)(ii)
Insert:
(iia) a debtor under a debt agreement proposal or debt agreement under Part
IX; or
(iib) a debtor whose property is subject to control under Division 2 of Part
X; or 49 Paragraph 12(1)(c)
Omit "Registrars,". 50 At the end of subsection 12(1)
Add:
; and (d) must give the Minister, after the end of each financial year, a
report on the operation of this Act during that financial year for
presentation by the Minister to the Parliament. 51 Subsection 12(1B)
Omit "shall file with the Registrar a report setting out the results of the
inquiry or investigation and may file such supplementary reports as the
Inspector-General thinks fit", substitute "may give a copy of the report of
the results of the inquiry or investigation to any person the
Inspector-General thinks fit". 52 Paragraphs 12(2)(a) and (b)
Repeal the paragraphs, substitute:

   (a)  require the production of any books kept by an Official Receiver or by
        a trustee; and

   (b)  require a trustee to answer an inquiry made to him or her in relation
        to any of the following matters in which the trustee is, or has been,
        engaged:

        (i)    a bankruptcy;

        (ii)   the control of property under an authority given under section
               188;

        (iii)  an administration under Part XI;

        (iv)   a deed of assignment, deed of arrangement, scheme of
               arrangement or composition; and 53 Paragraph 12(2)(c)
Omit "and". 54 Paragraph 12(2)(d)
Repeal the paragraph. 55 Subsection 12(3)
Repeal the subsection. 56 Subsection 12(4)
Omit ", or a person authorised in writing by the Inspector-General to exercise
the powers of the Inspector-General under this subsection". 57 Sections 13, 14
and 14A
Repeal the sections, substitute: 13 Bankruptcy Districts
The Inspector-General, by notice in the Gazette, may declare any part, or any
parts, of Australia to be a Bankruptcy District for the purposes of this Act.
58 Subsection 15(2)
Repeal the subsection. 59 Subsections 15(4) and (5)
Repeal the subsections, substitute:

(4) An Official Receiver may by signed instrument delegate to an officer of
the Department all or any of the powers and functions of the Official Receiver
under this Act.

(5) The Court may review an act done by an Official Receiver. Note: Section
303 explains who may apply to the Court for review of an Official Receiver's
action. 60 Section 16
Omit ", each Registrar and Deputy Registrar". Note: The heading to section 16
is replaced by the heading "Appointment of Inspector-General and Official
Receivers". 61 Sections 17A and 17AA
Repeal the sections. 62 Subsection 18(1)
Repeal the subsection, substitute:

(1) The corporation sole known as the Official Trustee in Bankruptcy, that
existed immediately before this subsection commenced, continues in existence
as a body corporate with the same name. 63 Subsection 18(3)
Repeal the subsection. 64 Subsection 18(8)
Repeal the subsection, substitute:

(8) The Official Receiver for a District may exercise the powers, and perform
the functions, of the Official Trustee that relate to a matter that is
determined under section 5AA to have originated in that District.

(8AA) In exercising powers or performing functions under subsection (8), an
Official Receiver must act in the name of, and on behalf of, the Official
Trustee. 65 Subsection 18(8A)
Omit ", or under the authority of,". 66 Subsections 18(8B) and (8C)
Repeal the subsections, substitute:

(8B) The Inspector-General may exercise any of the powers, and perform any of
the functions, of the Official Trustee that are not mentioned in subsection
(8).

(8C) In exercising powers or performing functions under subsection (8B), the
Inspector-General must act in the name of, and on behalf of, the Official
Trustee.

(8D) Anything done by the Inspector-General in the name of, or on behalf of,
the Official Trustee is taken to have been done by the Official Trustee. 67
Subsection 18(9)
Omit "or of the repealed Act in its continued application by virtue of this
Act". 68 Paragraph 18(9)(a)
Omit ", or with the authority of, any Official Receiver", substitute "a person
who may exercise the power or perform the function under subsection (8) or
(8B)". 69 Paragraph 18(9)(b)
Omit "by, or with the authority of, any Official Receiver, in the exercise of
such a power, or performance of such a function,". 70 At the end of paragraphs
18A(1)(a), (b), (c) and (d)
Add "or". 71 Paragraph 18A(1)(e)
Omit "or" (last occurring). 72 Paragraph 18A(1)(f)
Repeal the paragraph. 73 At the end of subsection 18A(2)
Add:
; or (c) for any act done, or omitted to be done, by the Official Trustee:

        (i)    under Part IX; or

        (ii)   under the authority contained in a debt agreement to deal with
               the property of the person who is a party (as debtor) to the
               agreement. 74 Subsections 19(1) to (1D)
Repeal the subsections, substitute:

(1) The duties of the trustee of the estate of a bankrupt include the
following:

   (a)  notifying the bankrupt's creditors of the bankruptcy;

   (b)  determining whether the estate includes property that can be realised
        to pay a dividend to creditors;

   (c)  reporting to creditors within 3 months of the date of the bankruptcy
        on the likelihood of creditors receiving a dividend before the end of
        the bankruptcy;

   (d)  giving information about the administration of the estate to a
        creditor who reasonably requests it;

   (e)  determining whether the bankrupt has made a transfer of property that
        is void against the trustee;

   (f)  taking appropriate steps to recover property for the benefit of the
        estate;

   (g)  taking whatever action is practicable to try to ensure that the
        bankrupt discharges all of the bankrupt's duties under this Act;

   (h)  considering whether the bankrupt has committed an offence against this
        Act;

   (i)  referring to relevant law enforcement authorities any evidence of an
        offence by the bankrupt against this Act;

   (j)  administering the estate as efficiently as possible by avoiding
        unnecessary expense;

   (k)  exercising powers and performing functions in a commercially sound
        way. 75 Section 19AA
Repeal the section, substitute: 19AA Power of investigation of bankrupt's
affairs

(1) A registered trustee who is the trustee of the estate of a bankrupt may
investigate:

   (a)  the bankrupt's conduct and examinable affairs; and

   (b)  books, accounts and records kept by the bankrupt; so far as they
        relate to the bankruptcy.

(2) An Official Receiver may investigate:

   (a)  any bankrupt's conduct and examinable affairs; and

   (b)  books, accounts and records kept by the bankrupt; so far as they
        relate to the bankruptcy. 76 Subsection 19A(1)
Omit "or under the Bankruptcy Act 1924-1965 in its continued application by
virtue of this Act" (wherever occurring). 77 Subsection 19A(2)
Omit "or the Bankruptcy Act 1924-1965 in its continued application by virtue
of this Act". 78 Subsection 19A(3)
Omit ", a Deputy Registrar" (wherever occurring). Note: The heading to section
19A is altered by omitting "Registrars, Deputy Registrars,". 79 Sections 19B
and 20
Repeal the sections. 80 Subsection 20B(7)
Omit "or of the Bankruptcy Act 1924-1965 in its continued application by
virtue of this Act". 81 Subsection 20D(5)
Repeal the subsection. 82 At the end of subparagraph 20J(1)(b)(i)
Add "or". 83 Subparagraph 20J(1)(b)(ii)
Omit "or" (last occurring). 84 Subparagraph 20J(1)(b)(iii)
Repeal the subparagraph. 85 Subsection 20J(2)
Omit "Registrar", substitute "Inspector-General". 86 Subsection 20J(2)
After "prescribed", insert "by the regulations". 87 Subsection 20J(4)
After "prescribed", insert "by the regulations". 88 Division 1 of Part III
Repeal the Division. 89 Subsection 27(1)
Repeal the subsection, substitute:

(1) The Federal Court has jurisdiction in bankruptcy, and that jurisdiction is
exclusive of the jurisdiction of all courts other than the jurisdiction of the
High Court under section 75 of the Constitution. 90 Subsections 27(1A), (2)
and (3)
Repeal the subsections. 91 Section 28
Repeal the section. 92 Paragraph 29(5)(b)
After "prescribed", insert "by the regulations". Note: The heading to section
29 is replaced by the heading "Courts to help each other". 93 Paragraph
30(1)(a)
Omit "X or Part", substitute "IX, X or". 94 Subsection 30(4)
Repeal the subsection. 95 Paragraph 31(1)(h)
Repeal the paragraph. 96 Section 31A
Repeal the section. 97 Subsection 33(2)
Repeal the subsection. 98 Section 35
Repeal the section. 99 Subparagraph 35A(3)(f)(iv)
Omit "in Bankruptcy, a Deputy Registrar in Bankruptcy or a Registrar of the
Federal Court". 100 Subsection 36(2)
Omit "the hand of the Registrar and". 101 Section 38
Repeal the section. 102 Paragraph 40(1)(da)
Omit "Registrar", substitute "Official Receiver". 103 Subparagraph 40(1)(g)(i)
Omit "fixed by the Registrar by whom the notice was issued", substitute
"specified in the notice". 104 After paragraph 40(1)(h)
Insert:

   (ha) if the debtor gives the Official Trustee a debt agreement proposal;

   (hb) if a debt agreement proposal given by the debtor to the Official
        Trustee is accepted by the debtor's creditors;

   (hc) if the debtor breaches a debt agreement;

   (hd) if a debt agreement to which the debtor was a party (as a debtor) is
        terminated under section 185P or 185Q; 105 Paragraph 40(1)(m)
Omit "or" (last occurring). 106 Paragraph 40(1)(n)
Omit "and, before the annulment, the debtor's bankruptcy has been annulled".
107 Paragraph 40(3)(c)
Repeal the paragraph. 108 Paragraph 40(3)(f)
Omit ", being maintenance that was:". 109 Subparagraphs 40(3)(f)(i) and (ii)
Repeal the subparagraphs. 110 Subsection 40(4)
Omit "by post to the creditors in accordance with section 194", substitute "to
the creditors". 111 Subsections 41(1) to (2C)
Repeal the subsections, substitute:

(1) An Official Receiver may issue a bankruptcy notice on the application of a
creditor who has obtained against a debtor a final judgment or final order
that:

   (a)  is described in paragraph 40(1)(g); and

   (b)  is for an amount of at least $2,000.

(2) The notice must be in accordance with the form prescribed by the
regulations. 112 Subsection 41(4)
Repeal the subsection. 113 Subsection 41(6A)
Omit "by the Court or the Registrar". 114 Paragraph 41(6A)(b)
Repeal the paragraph, substitute:

   (b)  an application has been made to the Court to set aside the bankruptcy
        notice; 115 Subsection 41(6B)
Repeal the subsection. 116 Paragraph 41(6C)(a)
Omit "or the Registrar". 117 Subsection 41(6C)
Omit "or the Registrar, as the case may be," (wherever occurring). 118
Subsection 41(7)
Omit "filed with the Registrar an affidavit to the effect that he", substitute
"applied to the Court for an order setting aside the bankruptcy notice on the
ground that the debtor". 119 Subsections 41(8) and (9)
Repeal the subsections. 120 Paragraph 44(1)(a)
Omit "$1,500" (wherever occurring), substitute "$2,000". 121 Subsection 44(5)
Omit "the prescribed time", substitute "3 months". 122 Subsection 47(1)
Repeal the subsection, substitute:

(1) A creditor's petition must be verified by an affidavit of a person who
knows the relevant facts.

(1A) If the rules of court prescribe a form for the purposes of this
subsection, the petition must be in the form prescribed. 123 Subsection 50(1)
Repeal the subsection, substitute:

(1) At any time after a bankruptcy notice is issued in relation to a debtor,
but before the debtor becomes a bankrupt, the Court may:

   (a)  direct the Official Trustee or a specified registered trustee to take
        control of the debtor's property; and

   (b)  make any other orders in relation to the property.

(1A) The Court may give a direction or make an order only if:

   (a)  a creditor has applied for the Court to make a direction; and

   (b)  the Court is satisfied that it is in the interests of the creditors to
        do so; and

   (c)  the debtor has not complied with the bankruptcy notice.

(1B) If the Court directs a trustee to take control of the debtor's property,
the Court must specify when the control is to end. 124 Subsection 50(5)
Omit "the prescribed modifications (if any)", substitute "any modifications
prescribed by the regulations". 125 After subsection 52(1)
Insert:

(1A) 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 District in
which the order was made. 126 Paragraph 54(1)(a)
Omit "Registrar", substitute "Official Receiver". 127 At the end of subsection
54(1)
Add: Penalty: 5 penalty units. 128 Paragraph 54(2)(a)
Omit "Registrar", substitute "Official Receiver". 129 At the end of subsection
54(2)
Add: Penalty: 5 penalty units. 130 Subsections 54(3) and (3A)
Repeal the subsections. 131 Subsection 54(4)
Omit "prescribed fee", substitute "fee prescribed by the regulations". 132
Section 54A
Omit "Registrar a declaration, in accordance with the prescribed", substitute
"Official Receiver a declaration, in the approved". 133 Section 54C
Omit "Registrar" (wherever occurring), substitute "Official Receiver". 134
Paragraph 54C(a)
Omit "prescribed", substitute "approved". 135 Subparagraph 54C(a)(ii)
Omit "and seal". 136 Subsection 54D(1)
Repeal the subsection, substitute:

(1) Before accepting a declaration presented by a debtor under section 54A,
the Official Receiver must give the debtor the information prescribed by the
regulations. Note: The heading to section 54D is replaced by the heading
"Official Receiver to give information to debtor". 137 Subsection 54D(2)
Omit "Registrar's", substitute "Official Receiver's". 138 Subsection 54E(1)
Omit "sealed copy of the declaration", substitute "copy of the declaration
signed by the Official Receiver who accepted it". 139 Subsection 54F(1)
Omit "sealed copy of the declaration", substitute "copy of the declaration
signed by the Official Receiver who accepted it". 140 Section 54G
Omit "sealed copy of the declaration", substitute "copy of the declaration
signed by the Official Receiver who accepted it". 141 Subsection 54H(1)
Omit "sealed copy of the declaration", substitute "copy of the declaration
signed by the Official Receiver who accepted it". 142 Paragraph 54H(2)(b)
Omit "sealed", substitute "signed". 143 Subsection 54H(4)
Repeal the subsection. 144 Subsection 55(1)
Omit "Registrar", substitute "Official Receiver". 145 Paragraph 55(2)(a)
Omit "prescribed", substitute "approved". 146 Subsections 55(3), (3A) and (4)
Repeal the subsections, substitute:

(3) The Official Receiver may reject a debtor's petition if:

   (a)  the petition does not comply substantially with the approved form; or

   (b)  the petition is not accompanied by a statement of affairs; or

   (c)  the Official Receiver thinks that the statement of affairs
        accompanying the petition is inadequate.

(3A) Before accepting a debtor's petition the Official Receiver must give the
debtor the information prescribed by the regulations.

(3B) The Official Receiver must refer a debtor's petition to the Court for a
direction to accept or reject it if there is a creditor's petition pending
against a group of debtors (whether they are joint debtors or members of a
partnership) that includes the debtor against whom the debtor's petition is
presented. Example 1: When Anna presents a debtor's petition against herself,
there is a creditor's petition pending against Anna and Tim as joint debtors.
The Official Receiver must refer the debtor's petition to the Court. Example
2: When Peter presents a debtor's petition against himself, there are 2
creditor's petitions pending against him alone. The Official Receiver is not
required to refer the debtor's petition to the Court, because Peter does not
form a group by himself.

(3C) If the Court directs the Official Receiver to accept the debtor's
petition, the Court must specify the time of the commencement of the
bankruptcy that results from acceptance of the debtor's petition.

(4) The Official Receiver must accept a debtor's petition, unless the Official
Receiver rejects it under subsection (3) or is directed by the Court to reject
it. 147 Subsection 55(4A)
Omit "Registrar" (wherever occurring), substitute "Official Receiver". 148
Subsection 55(5)
Repeal the subsection, substitute:

(5) If a registered trustee is the trustee of the estate of a debtor who
becomes a bankrupt under this section, the Official Receiver must:

   (a)  notify the trustee of the bankruptcy; and

   (b)  give the trustee a copy of the statement of affairs that accompanied
        the debtor's petition.

(5A) A debtor who is a party (as debtor) to a debt agreement must not present
a debtor's petition unless the Court gives the debtor permission to do so. 149
Subsection 55(7)
Omit "(6)", substitute "(5A), (6)". 150 Subsection 55(9)
Omit "prescribed fee", substitute "fee prescribed by the regulations". 151
Section 56
Repeal the section, substitute: 56A Persons who may present a debtor's
petition against a partnership

(1) A debtor's petition against a partnership may be presented by:

   (a)  all the partners; or

   (b)  a majority of the partners who are resident in Australia.

(2) A member of a partnership who is a party (as debtor) to a debt agreement
must not join in presenting a debtor's petition against the partnership unless
the Court gives the member permission to do so.

(3) A member of a partnership who has executed a deed of assignment under Part
X must not join in presenting a petition against the partnership unless the
deed has been declared void, the final dividend has been paid under the deed
or the Court gives permission for the member to join in presenting a petition
against the partnership.

(4) A member of a partnership who has executed a deed of arrangement under
Part X must not join in presenting a petition against the partnership unless
the deed has been declared void or has been terminated or the Court gives
permission for the member to join in presenting a petition against the
partnership.

(5) A member of a partnership whose creditors have accepted a composition
under Part X must not join in presenting a petition against the partnership
unless the composition has been declared void, has been set aside or
terminated, the final payment has been made under the composition or the Court
gives permission for the member to join in presenting a petition against the
partnership.

(6) A member of a partnership in relation to whom a stay under a proclaimed
law applies must not join in presenting a petition against the partnership
unless the Court gives the member permission to do so.

(7) If a member of a partnership contravenes subsection (2), (3), (4), (5) or
(6) by joining in the presentation of a petition, the petition does not have
any effect. 56B Presentation of a debtor's petition against a partnership

(1) Any debtor's petition against a partnership must be presented to the
Official Receiver.

(2) A petition must be in accordance with the approved form.

(3) A petition must be accompanied by:

   (a)  a statement of affairs of each member of the partnership by whom the
        petition is presented; and

   (b)  a statement of the partnership affairs; and

   (c)  a copy of each of those statements.

(4) The Official Receiver may reject a petition if:

   (a)  the petition does not comply substantially with the approved form; or

   (b)  the petition is not accompanied by the statements of affairs of each
        petitioning partner and of the partnership; or

   (c)  the Official Receiver thinks that any of the statements of affairs
        accompanying the petition is inadequate.

(5) Before accepting a debtor's petition against a partnership, the Official
Receiver must give the information prescribed by the regulations to each
member of the partnership who joined in presenting the petition. 56C Referral
to the Court of a debtor's petition against a partnership

(1) The Official Receiver must refer a debtor's petition against a partnership
to the Court for a direction to accept or reject the petition if either or
both of the following conditions are met:

   (a)  the petition was presented against the partnership by some, but not
        all, members of the partnership;

   (b)  there is at least one creditor's petition pending against at least one
        of the members of the partnership (not counting a creditor's petition
        against all the members of the partnership and no-one else). Example
        1: Edith, Lindsay and Bertha are the members of a partnership. When
        Edith and Lindsay present a debtor's petition against the partnership
        there is a creditor's petition pending against Bertha. The Official
        Receiver must refer the debtor's petition to the Court. Example 2:
        Keith, Leigh and Judith are the members of a partnership. When they
        all present a debtor's petition against the partnership, there are 2
        creditor's petitions pending: one against Keith, Leigh and Judith, the
        other against Judith alone. The Official Receiver must refer the
        debtor's petition to the Court. Example 3: Meredith, Ramsay and Wilson
        are the members of a partnership. When they all present a debtor's
        petition against the partnership, there are 2 creditor's petitions
        pending. Both of the creditor's petitions are against Meredith, Ramsay
        and Wilson (and no-one else). There is no requirement for the Official
        Receiver to refer the debtor's petition to the Court.

(2) If the Official Receiver refers a petition to the Court because the
petition was presented by some, but not all, of the members of the
partnership, the Official Receiver must give notice in accordance with the
regulations to the members who did not present the petition.

(3) After a petition has been referred to the Court, the Court must direct the
Official Receiver:

   (a)  to accept the petition in the form in which it was referred to the
        Court; or

   (b)  to accept the petition after amending it as directed by the Court; or

   (c)  to reject the petition.

(4) If:

   (a)  a debtor's petition is presented against a partnership that includes a
        person to whom a stay applies under a proclaimed law; and

   (b)  the person is not one of the petitioning partners; the Court must not
        give a direction in relation to the petition until the person
        administering the proclaimed law has had an opportunity to be heard.

(5) If the Court directs the Official Receiver to accept (either with or
without amendments) a petition referred to the Court, the Court must specify
the time of the commencement of the bankruptcy of each of the persons who
becomes a bankrupt as a result of the acceptance of the petition. 56D
Acceptance of a debtor's petition against a partnership by the Official
Receiver

(1) The Official Receiver must accept a debtor's petition against a
partnership unless the Official Receiver rejects it under section 56B or is
directed by the Court to reject the petition.

(2) When the Official Receiver accepts the petition, the Official Receiver
must note on it the fact that it has been accepted. 56E Effects of acceptance
of a debtor's petition against a partnership

(1) When the Official Receiver notes the fact of acceptance on a petition that
has not been amended under a direction of the Court, each member of the
partnership becomes a bankrupt by force of this section.

(2) When the Official Receiver notes the fact of acceptance on a petition that
has been amended under a direction of the Court, each member of the
partnership to whom the petition applies becomes a bankrupt by force of this
section.

(3) A person who becomes a bankrupt by force of this section continues to be a
bankrupt until:

   (a)  he or she is discharged by force of subsection 149(1) or in accordance
        with Division 3 of Part VII; or

   (b)  his or her bankruptcy is annulled by force of subsection 74(5) or
        153A(1) or under section 153B.

(4) If a registered trustee is the trustee of the estate of a person who
becomes a bankrupt under this section, the Official Receiver must:

   (a)  notify the trustee of the bankruptcy; and

   (b)  give the trustee a copy of each statement of affairs that accompanied
        the debtor's petition. 56F Extra duties of non-petitioning partners
        who become bankrupts

(1) A member of a partnership who did not join in presenting a debtor's
petition against the partnership but became a bankrupt as a result of the
acceptance of the petition must give the Official Receiver:

   (a)  a statement of the member's affairs; and

   (b)  a statement of the affairs of the partnership; within 14 days after
        the day that the member was notified of his or her bankruptcy, unless
        the member has a reasonable excuse. Penalty: 5 penalty units.

(2) A member of a partnership complies with paragraph (1)(b) if the member and
at least one other member of the partnership who did not join in presenting
the petition against the partnership jointly give the Official Receiver a
statement of the affairs of the partnership.

(3) A member of a partnership who must give statements of affairs to the
Official Receiver under subsection (1) must give copies of the statements to
the trustee in the member's bankruptcy if the trustee is a registered trustee.
56G Inspection of statements of affairs of partners and partnerships

(1) A person may inspect, copy, or take extracts from, any statement of
affairs that was given to the Official Receiver in connection with a debtor's
petition against a partnership.

(2) Before inspecting, copying or taking extracts from a statement, the person
must pay the fee prescribed by the regulations, unless:

   (a)  the person states in writing that he or she is a creditor of the
        partnership or of a member of the partnership who became a bankrupt as
        a result of the petition; or

   (b)  the person is an agent of a person described in paragraph (a). 152
        Subsection 57(1)
Omit "Registrar", substitute "Official Receiver". 153 Subsection 57(2)
Omit "prescribed", substitute "approved". 154 Subsections 57(3), (3A) and (4)
Repeal the subsections, substitute:

(3) The Official Receiver may reject a debtor's petition if:

   (a)  the petition does not comply substantially with the approved form; or

   (b)  the petition is not accompanied by all the statements of affairs
        required by subsection (2); or

   (c)  the Official Receiver thinks that any of the statements of affairs
        accompanying the petition is inadequate.

(3A) Before accepting a debtor's petition against joint debtors, the Official
Receiver must give each petitioning debtor the information prescribed by the
regulations.

(3B) The Official Receiver must refer a debtor's petition to the Court for a
direction to accept or reject it if there is at least one creditor's petition
that:

   (a)  is pending against at least one of the debtors (whether or not the
        creditor's petition also relates to other persons); and

   (b)  does not relate only to all the joint debtors who presented the
        debtor's petition. Example 1: Peta and Abdul are joint debtors. When
        they present a debtor's petition against themselves, there is a
        creditor's petition pending against Abdul. The Official Receiver must
        refer the debtor's petition to the Court, because the creditor's
        petition does not relate to both Peta and Abdul. Example 2: Joan and
        Craig are joint debtors. When they present a debtor's petition against
        themselves, there is a creditor's petition pending against Joan, Craig
        and Paul. The Official Receiver must refer the debtor's petition to
        the Court. Example 3: Kim, Robin and Jane are joint debtors. When they
        present a debtor's petition against themselves, there is a creditor's
        petition pending against Kim, Robin and Jane, and no-one else. The
        Official Receiver is not required to refer the debtor's petition to
        the Court.

(3C) If the Court directs the Official Receiver to accept the debtor's
petition, the Court must specify the time of the commencement of each
bankruptcy that results from acceptance of the debtor's petition.

(4) The Official Receiver must accept a debtor's petition, unless the Official
Receiver rejects it under subsection (3) or is directed by the Court to reject
it. 155 Subsection 57(5)
Omit "Registrar" (wherever occurring), substitute "Official Receiver". 156
Subsection 57(6)
Repeal the subsection, substitute:

(6) If a registered trustee is the trustee of the estate of a person who
becomes a bankrupt under this section, the Official Receiver must:

   (a)  notify the trustee of the bankruptcy; and

   (b)  give the trustee a copy of each statement of affairs that accompanied
        the debtor's petition.

(6A) A debtor who is a party (as debtor) to a debt agreement must not present
a debtor's petition unless the Court gives the debtor permission to do so. 157
Subsection 57(9)
Omit "(7)", substitute "(6A), (7)". 158 Subsection 57(11)
Omit "prescribed fee", substitute "fee prescribed by the regulations". 159
Section 57A
Omit "Registrar", substitute "Official Receiver". 160 Subsection 63A(1)
(paragraph (b) of the definition of joint bankruptcy)
Omit "56", substitute "56E". 161 After paragraph 64D(a)
Insert:

   (aa) if the creditor has been assigned a debt that the bankrupt owes to the
        creditor-the value of the consideration that the creditor gave for the
        assignment of the debt; and 162 Paragraph 64G(l)
Omit "his or her remuneration to be fixed by the Registrar", substitute "to be
remunerated as prescribed by the regulations". 163 Subsection 64U(2)
Omit "his or her remuneration to be fixed by the Registrar under subsection
162(4)", substitute "to be remunerated as prescribed by the regulations". 164
Paragraph 64Z(5)(d)
Omit "file the certificate with the Registrar", substitute "keep it and allow
the bankrupt, a creditor or an officer of the Department to inspect it at any
reasonable time". 165 At the end of section 64ZB
Add:

(8) For the purposes of determining whether a motion proposed at the meeting
is resolved, the value of a creditor who:

   (a)  has been assigned a debt; and

   (b)  is present at the meeting personally, by telephone, by attorney or by
        proxy; and

   (c)  is voting on the motion; is to be worked out by taking the value of
        the assigned debt to be equal to the value of the consideration that
        the creditor gave for the assignment of the debt. 166 After subsection
        73(2)
Insert:

(2A) The report must indicate whether the proposal would benefit the
bankrupt's creditors generally. 167 Subsection 74(5A)
Omit "to the Registrar a written certificate", substitute "the Official
Receiver a written notice". 168 Subsection 74(5B)
Repeal the subsection. 169 Subsection 76(1)
Omit "the prescribed modifications (if any)", substitute "any modifications
prescribed by the regulations". 170 Subsection 76(2)
Omit "prescribed modifications", substitute "modifications prescribed by the
regulations". 171 Section 76A
Omit "rules", substitute "regulations". 172 Subsection 77AA(1)
Omit "and for that purpose may make copies of, or take extracts from, any such
book.", substitute: and for that purpose:

   (a)  may make copies of, or take extracts from, books; and

   (b)  may remove from premises any books that the Official Receiver or
        officer reasonably considers may be relevant to the examinable affairs
        of:

        (i)    a bankrupt whose affairs are being administered under Part IV;
               or

        (ii)   a person who is a party (as debtor) to a debt agreement; or

        (iii)  a debtor whose affairs are being administered under Part X; or

        (iv)   a deceased debtor whose affairs are being administered under
               Part XI or are subject to a debt agreement. 173 After
               subsection 77AA(1)
Insert:

(1A) A registered trustee may accompany and assist the Official Receiver or an
officer exercising powers under subsection (1) if:

   (a)  the Official Receiver has given written authority for the registered
        trustee to do so; and

   (b)  the exercise of the powers under subsection (1) relates to a bankrupt,
        debtor or deceased debtor whose affairs the registered trustee is
        administering.

(1B) The registered trustee may be accompanied by a person nominated by the
registered trustee.

(1C) The Official Receiver or officer may remove books from premises only if
the Official Receiver or officer reasonably considers that:

   (a)  it is not reasonably practicable to make copies of, or take extracts
        from, the books on the premises; or

   (b)  it would be an unreasonable intrusion on the affairs of the occupier
        of the premises to remain on the premises to make copies of, or take
        extracts from, the books.

(1D) If the Official Receiver or officer reasonably believes that any books
are, or may be, relevant to the examinable affairs of a bankrupt, a person who
is a party (as debtor) to a debt agreement, a debtor whose affairs are being
administered under Part X or a deceased debtor whose affairs are being
administered under Part XI, the Official Receiver or officer may keep the
books until he or she decides that:

   (a)  he or she no longer needs the books; or

   (b)  the books are not relevant to the examinable affairs of any bankrupt,
        person who is a party (as debtor) to a debt agreement, debtor or
        deceased debtor.

(1E) While the Official Receiver or officer is keeping books, a person whose
books they are, or from whose premises the books were taken, may inspect the
books at any reasonable time. Note: The heading to section 77AA is altered by
inserting "and others" after "Official Receiver". 174 Subsections 77E(3), (4)
and (5)
Omit "rules" (wherever occurring), substitute "regulations". 175 Section 79
Repeal the section. 176 Subsection 80(1)
Omit "the Registrar and". 177 Subsection 80(4)
Repeal the subsection. 178 Subsection 81(1)
Omit "the Registrar", substitute "a Registrar". 179 Subsection 81(16)
Repeal the subsection. 180 Subsection 81(17)
Omit "(being a transcript certified, or certified, signed and sealed, in
pursuance of section 255)". 181 Paragraph 81(17)(b)
Omit "prescribed fee", substitute "fee prescribed by the regulations". 182
Subsection 82(1A)
Repeal the subsection, substitute:

(1A) Without limiting subsection (1), debts referred to in that subsection
include a debt consisting of all or part of a sum that became payable by the
bankrupt under a maintenance agreement or maintenance order before the date of
the bankruptcy. 183 Paragraph 84(2)(b)
Omit "prescribed", substitute "approved". 184 Subsection 84(3)
Omit "notice, in accordance with the prescribed form,", substitute "written
notice". 185 Subsection 84(4)
Repeal the subsection, substitute:

(4) A statutory declaration verifying matters in a proof of debt lodged by a
creditor may be made by:

   (a)  the creditor; or

   (b)  a person whose own knowledge includes the facts set out in the
        statutory declaration and the proof of debt, and who is authorised by
        the creditor to make the declaration. 186 Subsection 85(2)
Omit "prescribed", substitute "approved". 187 Subsection 85(2A)
Omit "notice, in accordance with the prescribed form,", substitute "written
notice". 188 Subsection 85(2B)
Repeal the subsection, substitute:

(2B) A statutory declaration verifying matters in a proof of debt lodged by a
person (the creditor) under this section may be made by:

   (a)  the creditor; or

   (b)  another person whose own knowledge includes the facts set out in the
        statutory declaration and the proof of debt, and who is authorised by
        the creditor to make the declaration. 189 Subsection 91(2)
Omit "or, in default of agreement, as the Registrar directs". 190 Subsection
99(2)
After "rules", insert "of court". 191 Paragraph 109(1)(a)
Omit "rules", substitute "regulations". 192 Paragraph 109(1)(a)
Omit ", not being an audit carried out by the Auditor-General". 193 Paragraph
109(1)(b)
Repeal the paragraph, substitute:

   (b)  second, if the bankrupt had signed an authority under section 188
        before the date of the bankruptcy, in payment of:

        (i)    the remuneration of the controlling trustee (as defined in
               section 187); and

        (ii)   the costs, charges and expenses properly and reasonably
               incurred by the controlling trustee while the authority was in
               force (including any debts incurred by the controlling trustee
               that are provable in the bankruptcy); 194 Paragraph 109(1)(e)
After "prescribed", insert "by the regulations". 195 After subsection 109(7)
Insert:

(7A) The trustee must keep the minutes of the meeting, and a written record of
the terms of a special resolution, referred to in paragraph (1)(j).

(7B) The trustee must allow a creditor or an officer of the Department to
inspect the minutes and record at any reasonable time. 196 Subsection 109(8)
Repeal the subsection, substitute:

(8) A payment must not be made under paragraph (1)(j) until 28 days after the
day on which the special resolution referred to in that paragraph was passed.
197 Subsection 114(2) (definitions of composition, deed of arrangement, deed
of assignment and scheme of arrangement)
Repeal the definitions. 198 Subsection 115(2)
Repeal the subsection, substitute:

(2) The bankruptcy of a person who becomes a bankrupt as a result of the
acceptance of a debtor's petition is taken to have relation back to, and to
have commenced at, the time indicated in the following table. Debtor's
petition bankruptcy-time to which bankruptcy has relation back and time
bankruptcy commences Circumstances in which debtor's petition was presented or
accepted
Time to which bankruptcy has relation back and time of
commencement of bankruptcy 1 Petition accepted by the Official Receiver under
a direction of the Court
Time specified by the Court as the commencement of the
bankruptcy 2 Petition presented when at least one creditor's petition was
pending against the petitioning debtor (whether alone, as a member of a
partnership or as a joint debtor), and accepted by the Official Receiver
without a direction from the Court
Time of the commission of the earliest act of bankruptcy on
which any of the creditor's petitions was based 3 Petition presented when no
creditor's petitions were pending but the debtor had committed at least one
act of bankruptcy in the past 6 months, and accepted by the Official Receiver
without a direction from the Court
Time of commission of the earliest act of bankruptcy within
the 6 months before the petition was presented 4 Petition presented when no
creditor's petitions were pending and the debtor had not committed any act of
bankruptcy in the past 6 months, and accepted by the Official Receiver without
a direction from the Court
Time of presentation of the petition 199 Paragraphs 116(2)(b) and (c)
Repeal the paragraphs, substitute:

   (b)  the bankrupt's household property that is:

        (i)    of a kind prescribed by the regulations; or

        (ii)   identified by a resolution passed by the creditors before the
               trustee realises the property;

   (c)  the bankrupt's property that is for use by the bankrupt in earning
        income by personal exertion and:

        (i)    does not have a total value greater than the limit prescribed
               by the regulations; or

        (ii)   is identified by a resolution passed by the creditors; or

        (iii)  is identified by an order made by the Court on an application
               by the bankrupt; 200 Paragraph 116(2)(ca)
Omit "prescribed amount", substitute "amount prescribed by the regulations".
201 Subsection 116(2A)
Repeal the subsection. 202 Subsection 116(2B)
Omit "determination by the creditors, or", substitute "resolution passed by
the creditors, or an order made". 203 Subsections 116(6), (7) and (8)
Omit "rules" (wherever occurring), substitute "regulations". 204 Subparagraph
118(5)(b)(i)
Omit "notice of the presentation of the petition, being a notice in accordance
with the prescribed form,", substitute "a written notice of the presentation
of the petition". 205 Subparagraph 118(6)(b)(i)
Omit "notice of the presentation of the petition, being a notice in accordance
with the prescribed form,", substitute "a written notice of the presentation
of the petition". 206 Subsection 119(3)
Omit "notice in accordance with the prescribed form, being a notice in the
form of a statutory declaration, specifying such particulars of the
maintenance agreement or maintenance order as are required by the form",
substitute "written notice setting out details of the maintenance agreement or
maintenance order". 207 Subsection 119(6)
Omit "notice in accordance with the prescribed form, being a notice in the
form of a statutory declaration, specifying such particulars of the
maintenance agreement or maintenance order as are required by the form",
substitute "written notice setting out details of the maintenance agreement or
maintenance order". 208 Sections 120 and 121
Repeal the sections, substitute: 120 Undervalued transactions Transfers that
are void against trustee

(1) A transfer of property by a person who later becomes a bankrupt (the
transferor) to another person (the transferee) is void against the trustee in
the transferor's bankruptcy if:

   (a)  the transfer took place in the period beginning 5 years before the
        commencement of the bankruptcy and ending on the date of the
        bankruptcy; and

   (b)  the transferee gave no consideration for the transfer or gave
        consideration of less value than the market value of the property.
        Exemptions

(2) Subsection (1) does not apply to:

   (a)  a payment of tax payable under a law of the Commonwealth or of a State
        or Territory; or

   (b)  a transfer to meet all or part of a liability under a maintenance
        agreement or a maintenance order; or

   (c)  a transfer of property under a debt agreement; or

   (d)  a transfer of property if the transfer is of a kind described in the
        regulations. Transfers that are not void

(3) Despite subsection (1), a transfer is not void against the trustee if:

   (a)  the transfer took place more than 2 years before the commencement of
        the bankruptcy; and

   (b)  the transferee proves that, at the time of the transfer, the
        transferor was solvent. Refund of consideration

(4) The trustee must pay to the transferee an amount equal to the value of any
consideration that the transferee gave for a transfer that is void against the
trustee. What is not consideration

(5) For the purposes of subsections (1) and (4), the following have no value
as consideration:

   (a)  the fact that the transferee is related to the transferor;

   (b)  if the transferee is the spouse or de facto spouse of the
        transferor-the transferee making a deed in favour of the transferor;

   (c)  the transferee's promise to marry, or to become the de facto spouse
        of, the transferor;

   (d)  the transferee's love or affection for the transferor. Protection of
        successors in title

(6) This section does not affect the rights of a person who acquired property
from the transferee in good faith and by giving consideration that was at
least as valuable as the market value of the property. Meaning of transfer of
property and market value

(7) For the purposes of this section:

   (a)  transfer of property includes a payment of money; and

   (b)  a person who does something that results in another person becoming
        the owner of property that did not previously exist is taken to have
        transferred the property to the other person; and

   (c)  the market value of property transferred is its market value at the
        time of the transfer. 121 Transfers to defeat creditors Transfers that
        are void

(1) A transfer of property by a person who later becomes a bankrupt (the
transferor) to another person (the transferee) is void against the trustee in
the transferor's bankruptcy if:

   (a)  the property would probably have become part of the transferor's
        estate or would probably have been available to creditors if the
        property had not been transferred; and

   (b)  the transferor's main purpose in making the transfer was:

        (i)    to prevent the transferred property from becoming divisible
               among the transferor's creditors; or

        (ii)   to hinder or delay the process of making property available for
               division among the transferor's creditors. Showing the
               transferor's main purpose in making a transfer

(2) The transferor's main purpose in making the transfer is taken to be the
purpose described in paragraph (1)(b) if it can reasonably be inferred from
all the circumstances that, at the time of the transfer, the transferor was,
or was about to become, insolvent. Other ways of showing the transferor's main
purpose in making a transfer

(3) Subsection (2) does not limit the ways of establishing the transferor's
main purpose in making a transfer. Transfer not void if transferee acted in
good faith

(4) Despite subsection (1), a transfer of property is not void against the
trustee if:

   (a)  the consideration that the transferee gave for the transfer was at
        least as valuable as the market value of the property; and

   (b)  the transferee did not know that the transferor's main purpose in
        making the transfer was the purpose described in paragraph (1)(b); and

   (c)  the transferee could not reasonably have inferred that, at the time of
        the transfer, the transferor was, or was about to become, insolvent.
        Refund of consideration

(5) The trustee must pay to the transferee an amount equal to the value of any
consideration that the transferee gave for a transfer that is void against the
trustee. What is not consideration

(6) For the purposes of subsections (4) and (5), the following have no value
as consideration:

   (a)  the fact that the transferee is related to the transferor;

   (b)  if the transferee is the spouse or de facto spouse of the
        transferor-the transferee making a deed in favour of the transferor;

   (c)  the transferee's promise to marry, or to become the de facto spouse
        of, the transferor;

   (d)  the transferee's love or affection for the transferor. Exemption of
        transfers of property under debt agreements

(7) This section does not apply to a transfer of property under a debt
agreement. Protection of successors in title

(8) This section does not affect the rights of a person who acquired property
from the transferee in good faith and for at least the market value of the
property. Meaning of transfer of property and market value

(9) For the purposes of this section:

   (a)  transfer or property includes a payment of money; and

   (b)  a person who does something that results in another person becoming
        the owner of property that did not previously exist is taken to have
        transferred the property to the other person; and

   (c)  the market value of property transferred is its market value at the
        time of the transfer. 209 Subsection 122(1)
Repeal the subsection, substitute:

(1) A transfer of property by a person who is insolvent (the debtor) in favour
of a creditor is void against the trustee in the debtor's bankruptcy if the
transfer:

   (a)  had the effect of giving the creditor a preference, priority or
        advantage over other creditors; and

   (b)  was made in the period that relates to the debtor, as indicated in the
        following table. Periods during which transfers of property may be
        void Description of petition leading to debtor's bankruptcy
Period during which the transfer was made 1 Creditor's petition
Period beginning 6 months before the presentation of the
petition and ending immediately before the date of the
bankruptcy of the debtor 2 Debtor's petition presented when at least one
creditor's petition was pending against a petitioning debtor or a member of a
partnership against which the debtor's petition was presented
Period beginning on the commencement of the debtor's
bankruptcy and ending immediately before the date of the
bankruptcy of the debtor 3 Debtor's petition presented in any other
circumstances
Period beginning 6 months before the presentation of the
petition and ending immediately before the date of the
bankruptcy of the debtor 210 Subsection 122(1A)
Omit "conveyance or transfer of property, a charge on property or a payment
made, or an obligation incurred,", substitute "transfer of property". 211
Paragraph 122(1A)(b)
Repeal the paragraph, substitute:

   (b)  whether or not the property transferred is the debtor's own property
        or is the property of the debtor and one or more other persons; 212
        Paragraph 122(2)(a)
Omit "in good faith and for valuable consideration and in the ordinary course
of business;", substitute "in the ordinary course of business who acted in
good faith and who gave consideration at least as valuable as the market value
of the property; or". 213 Paragraph 122(2)(b)
Omit "making title in good faith and for valuable consideration through or
under a creditor of the debtor", substitute "who is making title through or
under a creditor of the debtor in good faith and who gave consideration at
least as valuable as the market value of the property". 214 At the end of
subsection 122(2)
Add:
; or (d) a transfer of property under a debt agreement. 215 Paragraph
122(4)(a)
Repeal the paragraph, substitute:

   (a)  a transfer of property is taken to have been made in favour of a
        creditor if it is made in favour of a person in trust for the
        creditor; and 216 Paragraph 122(4)(b)
Omit "valuable consideration", substitute "consideration equal in value to the
payment". 217 Paragraph 122(4)(c)
Omit "conveyance, transfer, charge, payment or obligation was executed, made
or incurred", substitute "transfer of property was made". 218 Subparagraph
122(4)(c)(ii)
Omit "conveyance, transfer, charge, payment or obligation", substitute
"transfer". 219 Subsection 122(5)
Repeal the subsection, substitute:

(5) If a transfer of property is set aside by the trustee in a bankruptcy as a
result of this section, the creditor to whom the property was transferred may
prove in the bankruptcy as if the transfer had not been made. 220 Subsection
122(6)
Repeal the subsection. 221 At the end of section 122
Add:

(8) For the purposes of this section:

   (a)  transfer of property includes a payment of money; and

   (b)  a person who does something that results in another person becoming
        the owner of property that did not previously exist is taken to have
        transferred the property to the other person; and

   (c)  the market value of property transferred is its market value at the
        time of the transfer. 222 Subsection 123(1)
Omit "valuable consideration" (wherever occurring), substitute "market value".
Note: The heading to section 123 is altered by omitting "transactions" and
substituting "transfers of property". 223 Subsection 125(3) (definition of
prescribed organization)
After "prescribed" (second occurring), insert "by the regulations". 224
Subsection 127(3)
Omit "settlement, covenant, contract, payment or". 225 Subsection 127(4)
Omit "disposition", substitute "transfer". 226 Subsection 127(5)
Omit "conveyance, transfer, charge, payment or obligation", substitute
"transfer of property". 227 Subsection 129(4B)
Omit "prescribed", substitute "approved". 228 Subsection 133(2)
Omit ", when filed with the Registrar,". 229 Subsection 133(3)
Repeal the subsection, substitute:

(3) If a trustee disclaims property whose transfer must be registered under a
law of the Commonwealth or of a State or Territory of the Commonwealth, the
trustee must give notice of the disclaimer as soon as practicable to the
officer who has the function of registering the transfer. 230 Paragraph
133(4)(a)
After "days", insert "written". 231 Paragraph 133(4)(b)
After "by", insert "written". 232 Subsections 133(4A), (4B), (6A) and (6B)
Repeal the subsections. 233 Paragraph 134(1)(b)
Omit "for its beneficial disposal or winding-up", substitute "to dispose of it
or wind it up for the benefit of creditors". 234 Paragraph 134(1)(da)
Omit "having a net value not exceeding the prescribed amount,". 235 Paragraph
134(1)(e)
Omit ", not exceeding the prescribed amount," (twice occurring). 236 Paragraph
134(1)(f)
Omit "and not claimed to exceed the prescribed amount". 237 Paragraph
134(1)(g)
Omit ", not exceeding the prescribed amount,". 238 Paragraph 134(1)(m)
Omit "until the end of 2 months beginning on the date of the bankruptcy,". 239
At the end of subsection 134(1)
Add:
; (n) superintend the management of the whole, or a part, of the property of
the bankrupt;

   (o)  administer the property of the bankrupt in any other way. 240
        Subsections 134(2) and (2A)
Repeal the subsections. 241 At the end of subsection 134(4)
Add: Note: Section 178 allows an application to be made to the Court by the
bankrupt, a creditor or any other person who is affected by an act, omission
or decision of the trustee. 242 Subsection 135(1)
Omit ", with the permission of the creditors granted by resolution passed at a
meeting of the creditors, with the permission of the committee of inspection
or with the leave of the Court,". Note: The heading to section 135 is replaced
by the heading "Further powers exercisable by trustee". 243 Paragraphs
135(1)(a), (d), (f), (g) and (h)
Repeal the paragraphs. 244 Paragraph 135(1)(j)
Omit "bankrupt; and", substitute "bankrupt.". 245 Paragraph 135(1)(k)
Repeal the paragraph. 246 Subsections 135(2), (3) and (4)
Repeal the subsections. 247 Section 139K (definition of actual income
threshold amount)
Omit ", in relation to a bankrupt, at a particular time,", substitute ", at
the time an assessment is made in relation to a contribution assessment
period,". 248 Section 139K (paragraphs (b), (c), (d), (e) and (f) of the
definition of actual income threshold amount)
Repeal the paragraphs, substitute:

   (b)  if the bankrupt has one dependant at that time-the base income
        threshold amount increased by 18%; or

   (c)  if the bankrupt has 2 dependants at that time-the base income
        threshold amount increased by 27%; or

   (d)  if the bankrupt has 3 dependants at that time-the base income
        threshold amount increased by 32%; or

   (e)  if the bankrupt has 4 dependants at that time-the base income
        threshold amount increased by 34%; or

   (f)  if the bankrupt has more than 4 dependants at that time-the base
        income threshold amount increased by 36%. 249 Section 139K (definition
        of base income threshold amount)
Repeal the definition, substitute: base income threshold amount, at the time
when an assessment is made in relation to a contribution assessment period,
means:

   (a)  for a contribution assessment period of one year-3.5 times the amount
        that, at that time, is specified in column 3, item 2, Table B, point
        1064-B1, Pension Rate Calculator A, in the Social Security Act 1991;
        or

   (b)  for a contribution assessment period less than one year-a
        proportionally smaller amount based on the number of whole days in the
        period. 250 Section 139K (definition of contribution assessment
        period)
Repeal the definition, substitute:
contribution assessment period, in relation to a bankrupt, means a period
that:

   (a)  begins on the day the bankrupt becomes a bankrupt or an anniversary of
        that day during the bankruptcy; and

   (b)  ends one year after that day or anniversary, as the case requires, or
        if the bankrupt is discharged or the bankruptcy is annulled within
        that year, ends upon the discharge or annulment. 251 Section 139L
        (definition of income)
Repeal the definition, substitute:
income, in relation to a bankrupt, has its ordinary meaning, subject to the
following qualifications:

   (a)  the following are income in relation to a bankrupt (whether or not
        they come within the ordinary meaning of "income"):

        (i)    an annuity or pension paid to the bankrupt from a provident,
               benefit, superannuation, retirement or approved deposit fund;

        (ii)   a payment to the bankrupt in consequence of a termination of
               any office or employment;

        (iii)  an amount of annuity or pension received by the bankrupt under
               a policy of life insurance or endowment insurance;

        (iv)   an amount received by the bankrupt as a beneficiary under a
               trust to the extent that the amount was paid out of income of
               the trust;

        (v)    the value of a benefit that:

                (A)  is provided in any circumstances by any person (the
                     provider) to the bankrupt; and

                (B)  is a benefit within the meaning of the
                     Fringe Benefits Tax Assessment Act 1986 as in force at
                     the beginning of 1 July 1992 (other than a benefit that
                     would be an exempt benefit for the purposes of that Act
                     if the provider were the employer of the bankrupt as an
                     employee and the provider had provided the benefit in
                     respect of the employment of the bankrupt); being that
                     value as worked out in accordance with the provisions of
                     that Act but subject to any modifications of any
                     provisions of that Act made by the regulations under this
                     Act;

        (vi)   the value of a loan made to the bankrupt by an associated
               entity of the bankrupt, including:

                (A)  a loan under which the loan money is not paid to the
                     bankrupt, but is paid or applied at the bankrupt's
                     direction; and

                (B)  a loan that is not enforceable at law or in equity;

        (vii)  the amount of any money, or the value of any other
               consideration, received by a person other than the bankrupt
               from another person as a result of work done or services
               performed by the bankrupt, less any expenses (other than
               expenses of a capital nature) necessarily incurred by the
               first-mentioned person in connection with the work or services;

   (b)  the following are not income in relation to a bankrupt (even if they
        come within the ordinary meaning of "income"):

        (i)    an amount paid to the bankrupt:

                (A)  from the Child Support Trust Account established under
                     the Child Support (Registration and Collection) Act 1988;
                     or

                (B)  from another source for the maintenance of children of
                     whom the bankrupt has custody; or

        (ii)   an amount that is not income for the purposes of the Social
               Security Act 1991 because of subsection 8(8) of that Act,
               except for:

                (A)  a payment under that Act other than family payment under
                     Part 2.17 of that Act; and

                (B)  an amount referred to in paragraph (b), (h), (ha), (k),
                     (ka), (m), (z), (za) or (zb) of that subsection; or

        (iii)  an amount that is not income for the purposes of Part 8 of the
               Student and Youth Assistance Act 1973 because of subsection
               8(8) of the Social Security Act 1991 (other than paragraph (b),
               (h), (ha), (k), (ka), (m), (z), (za) or (zb) of that
               subsection) as that subsection has effect for the purposes of
               that Part because of section 57 of the Student and Youth
               Assistance Act 1973;

        (iv)   a payment to the bankrupt under:

                (A)  a legal aid scheme or service established under a law of
                     the Commonwealth or of a State or Territory of the
                     Commonwealth; or

                (B)  a legal aid scheme or service approved by the
                     Attorney-General for the purposes of paragraph 2(4)(a) of
                     the Federal Court of Australia Regulations; or

                (C)  any other legal aid scheme or service established to
                     provide assistance to people on low incomes;

        (v)    a payment or amount that the regulations provide is not income
               of the bankrupt. 252 Subparagraph 139N(a)(ii)
Repeal the subparagraph. 253 Subparagraph 139N(a)(iii)
After " Family Law Act 1975", insert "or under a maintenance order". 254
Subparagraph 139N(a)(iii)
After "that agreement", insert "or order". 255 Paragraph 139T(2)(f)
Omit "prescribed reason", substitute "reason prescribed by the regulations".
256 Subsection 139W(1)
Omit "and before the bankrupt is discharged". 257 Subsection 139W(1)
After "derived", insert ", or was derived,". 258 Subsection 139W(2)
Omit "but before the bankrupt is discharged". 259 Paragraph 139W(2)(b)
After "increased", insert "or decreased". 260 Section 139ZB
Repeal the section. 261 Subsection 139ZU(1)
Omit "section", substitute "subsection". 262 Paragraph 139ZV(1)(a)
Omit "Registrar", substitute "Court". 263 Section 139ZY
After "rules", insert "of court". 264 Section 139ZZ
After "rules", insert "of court". Note: The heading to section 139ZZ is
replaced by the heading "Procedure for applications to be prescribed by rules
of court". 265 Subsection 140(3)
Repeal the subsection, substitute:

(3) Before declaring the first dividend, the trustee must give written notice
of the trustee's intention to declare the dividend to anyone the trustee knows
of who claims, or might claim, to be a creditor but has not lodged a proof of
debt. 266 Subsection 140(8)
Omit "prescribed", substitute "approved". 267 Subsection 140(9)
After "prescribed", insert "by the regulations". 268 Subsection 149(5)
Repeal the subsection. 269 Section 149B
Omit "or Official Receiver may file with the Registrar a written notice of
objection to the discharge", substitute "may file with the Official Receiver a
written notice of objection to the discharge, or the Official Receiver may
file such a notice on the Official Receiver's own initiative". 270 At the end
of section 149B
Add:

(2) The trustee of a bankrupt's estate must file a notice of objection to the
discharge if the trustee believes:

   (a)  that doing so will help make the bankrupt discharge a duty that the
        bankrupt has not discharged; and

   (b)  that there is no other way for the trustee to induce the bankrupt to
        discharge any duties that the bankrupt has not discharged. 271 Section
        149E
Repeal the section. 272 Paragraph 149F(1)(b)
Repeal the paragraph, substitute:

   (b)  if:

        (i)    the trustee is a registered trustee; and

        (ii)   the notice of objection is filed by the Official Receiver; the
               Official Receiver must give a copy of the notice to the
               trustee. Note: The heading to section 149F is altered by
               omitting "and Official Receiver". 273 Section 149G
Omit "the notice of objection is filed", substitute "details of the notice of
objection are entered in the National Personal Insolvency Index". 274 Section
149H
Repeal the section, substitute: 149H Trustee or Official Receiver ceasing to
object on some grounds

(1) If at any time before a bankrupt is discharged the trustee ceases to
object to the discharge on a particular ground, the trustee must give the
Official Receiver a notice specifying the ground and give the bankrupt a copy
of the notice.

(2) If at any time before a bankrupt is discharged the Official Receiver
ceases to object to the discharge on a particular ground, the official
Receiver must:

   (a)  give a notice to the bankrupt specifying the ground of objection; and

   (b)  if the trustee is a registered trustee-give a copy of the notice to
        the trustee.

(3) If there is no longer an objection on any ground, the objection ceases to
have effect at the beginning of the last day when details of a notice under
subsection (1) or (2) are entered in the National Personal Insolvency Index.

(4) If one or more grounds of objection remain, the objection continues to
have effect on the remaining ground or grounds. 275 Section 149J
Repeal the section, substitute: 149J Withdrawal of objection

(1) If at any time before a bankrupt is discharged the trustee withdraws the
objection, the trustee must give the Official Receiver a notice of the
withdrawal of the objection and give the bankrupt a copy of the notice.

(2) If at any time before a bankrupt is discharged the Official Receiver
withdraws the objection, the Official Receiver must:

   (a)  give to the bankrupt written notice of the withdrawal; and

   (b)  if the trustee is a registered trustee-give a copy of the notice to
        the trustee.

(3) The withdrawal takes effect at the beginning of the day when details of a
notice under subsection (1) or (2) are entered in the National Personal
Insolvency Index. 276 Section 149L
Repeal the section. 277 Subsection 149R(2)
Omit "filing of such a statement under section 54, 55, 56 or 57", substitute
"giving of the statement to the Official Receiver under section 54, 55, 56B,
56F or 57". 278 Subsection 149ZF(3)
Repeal the subsection, substitute:

(3) As soon as practicable after signing the certificate, the trustee must:

   (a)  send a copy of the certificate to the former bankrupt; and

   (b)  if the trustee is a registered trustee-give the certificate to the
        Official Receiver. 279 Section 149ZI
Repeal the section. 280 Subsections 153A(2), (4) and (5)
Omit "Registrar" (wherever occurring), substitute "Official Receiver". 281
Subsection 153A(3)
Repeal the subsection. 282 Section 153B
Omit "Registrar", substitute "Official Receiver". 283 Sections 154A, 155,
155A, 155B and 156
Repeal the sections, substitute: 154A Application to become a registered
trustee

(1) An individual may apply to the Inspector-General to be registered as a
trustee.

(2) The application must be in the approved form.

(3) The application must be accompanied by:

   (a)  any information or documents prescribed by the regulations; and

   (b)  the fee prescribed by the regulations. 155 Processing of an
        application

(1) After receiving an application, the Inspector-General must convene a
committee to consider the application.

(2) The committee must consist of:

   (a)  the Inspector-General; and

   (b)  an officer of the Department; and

   (c)  a registered trustee chosen by the Insolvency Practitioners'
        Association of Australia (A.C.N. 002 472 362).

(3) The committee must consider the application and interview the applicant.
Note: The regulations may provide for the way in which the committee must do
its work: see section 315. 155A Committee's decision on an application Time
limit for decision

(1) Within 60 days of interviewing the applicant, the committee must decide
whether the applicant should be registered as a trustee or not. Mandatory
decision in favour of registration

(2) The committee must decide that the applicant should be registered if the
committee is satisfied that the applicant:

   (a)  has the qualifications, experience, knowledge and abilities prescribed
        by the regulations; and

   (b)  will take out insurance against liabilities that the applicant may
        incur working as a registered trustee; and

   (c)  has not been convicted, within 10 years before making the application,
        of an offence involving fraud or dishonesty; and

   (d)  has not been a bankrupt or a party (as debtor) to a debt agreement or
        Part X administration within 10 years before making the application;
        and

   (e)  has not had his or her registration as a trustee cancelled within 10
        years before making the application on the ground that:

        (i)    he or she contravened any conditions imposed by a committee on
               his or her practice as a registered trustee; or

        (ii)   he or she failed to exercise the powers of a registered trustee
               properly; or

        (iii)  he or she failed to carry out the duties of a registered
               trustee properly. Discretion to decide in favour of
               registration

(3) If the committee considers that the applicant is suitable to be registered
as a trustee, it may decide that the applicant should be registered even if it
is not satisfied that the applicant has the qualifications, experience,
knowledge and abilities prescribed by the regulations for the purposes of
paragraph (2)(a). Mandatory decision against registration

(4) The committee must decide that the applicant should not be registered if
it is satisfied that the applicant:

   (a)  will not take out insurance against liabilities that the applicant may
        incur working as a registered trustee; or

   (b)  has been convicted, within 10 years before making the application, of
        an offence involving fraud or dishonesty; or

   (c)  has been a bankrupt or a party (as debtor) to a debt agreement or a
        Part X administration within 10 years before making the application;
        or

   (d)  has had his or her registration as a trustee cancelled within 10 years
        before making the application on the ground that:

        (i)    he or she contravened any conditions imposed by a committee on
               his or her practice as a registered trustee; or

        (ii)   he or she failed to exercise the powers of a registered trustee
               properly; or

        (iii)  he or she failed to carry out the duties of a registered
               trustee properly. Conditions on registration

(5) If the committee decides that the applicant should be registered, it may
decide that specified conditions should apply to the applicant's practice as a
registered trustee. Report of decision

(6) The committee must give the applicant and the Inspector-General a report
on all of its decisions relating to the application, and the reasons for them.
Review of decision

(7) The applicant may apply to the Administrative Appeals Tribunal for review
of a decision of the committee. 155B Effect of committee's decision
The Inspector-General must give effect to all of the committee's decisions,
subject to paragraph 155C(1)(b). 155C Registration as a trustee

(1) The Inspector-General must register the applicant as a trustee if:

   (a)  the committee has decided that the applicant should be registered; and

   (b)  the applicant has given the Inspector-General the registration fee
        prescribed in the regulations.

(2) The Inspector-General registers an applicant by entering in the National
Personal Insolvency Index the details relating to the applicant that are
prescribed in the regulations.

(3) After registering a person as a trustee, the Inspector-General must give
the person a certificate of registration.

(4) The registration has effect for 3 years. 155D Extension of registration
The Inspector-General must extend the registration of a person as trustee for
three years from the expiry of the person's registration if:

   (a)  the person applies in writing to the Inspector-General for the
        extension before the person's registration expires; and

   (b)  the person gives the Inspector-General the registration fee prescribed
        in the regulations. 155E Application for change of conditions on
        practising as a registered trustee

(1) If a committee has decided under this Division that conditions should
apply to a person's practice as a registered trustee, the person may apply to
the Inspector-General for the conditions to be changed or removed.

(2) The application must be in the approved form.

(3) The application must be accompanied by:

   (a)  any information or documents prescribed by the regulations; and

   (b)  the fee prescribed by the regulations.

(4) After receiving an application, the Inspector-General must convene a
committee to consider the application.

(5) The committee must consist of:

   (a)  the Inspector-General; and

   (b)  an officer of the Department; and

   (c)  a registered trustee chosen by the Insolvency Practitioners'
        Association of Australia (A.C.N. 002 472 362).

(6) The committee must consider the application and interview the applicant.
Note: The regulations may provide for the way in which the committee must do
its work: see section 315. 155F Decision on application for change of
conditions

(1) Within 60 days of interviewing the applicant, the committee must:

   (a)  decide that the conditions on the applicant's practice as a registered
        trustee should not be changed; or

   (b)  decide that specified modifications should be made to the conditions
        that apply to the applicant's practice as a registered trustee. Note:
        See the definition of modifications in subsection 5(1).

(2) The committee must give the applicant and the Inspector-General a report
of its decision relating to the application, and the reasons for the decision.

(3) The applicant may apply to the Administrative Appeals Tribunal for review
of the committee's decision.

(4) The Inspector-General must give effect to the committee's decision. 155G
Voluntary termination of registration

(1) A person who is a registered trustee may give the Inspector-General a
written request that the person cease to be registered as a trustee.

(2) The person ceases to be registered as a trustee when the Inspector-General
accepts the request. 155H Consideration of involuntary termination of
registration

(1) The Inspector-General may ask a registered trustee to give the
Inspector-General a written explanation why the trustee should continue to be
registered, if the Inspector-General believes that:

   (a)  the trustee no longer has a qualification or ability that is
        prescribed by the regulations made for the purposes of paragraph
        155A(2)(a); or

   (b)  the trustee has been convicted of an offence involving fraud or
        dishonesty since registration as a trustee; or

   (c)  the trustee is not insured against liabilities that the trustee may
        incur, or has incurred, working as a registered trustee; or

   (d)  the trustee is no longer practising as a registered trustee; or

   (e)  the trustee has contravened any conditions imposed by the committee on
        the trustee's practice; or

   (f)  the trustee has failed to exercise powers of a registered trustee
        properly or has failed to carry out the duties of a registered trustee
        properly.

(2) If the Inspector-General does not receive an explanation within a
reasonable time, or is not satisfied by the explanation, the Inspector-General
must convene a committee to consider whether the trustee should continue to be
registered.

(3) The committee must consist of:

   (a)  the Inspector-General; and

   (b)  an officer of the Department; and

   (c)  a registered trustee chosen by the Insolvency Practitioners'
        Association of Australia (A.C.N. 002 472 362).

(4) In considering whether the trustee should continue to be registered, the
committee must take into account the matters mentioned in paragraphs (1)(a) to
(f). Note: The regulations may provide for the way in which the committee must
do its work: see section 315. 155I Decision on involuntary termination of
registration

(1) The committee must:

   (a)  decide that the trustee should continue to be registered; or

   (b)  decide that the trustee should cease to be registered.

(2) The committee may decide under paragraph (1)(a) that:

   (a)  the trustee should continue to be registered unconditionally; or

   (b)  the trustee should continue to be registered on the condition that:

        (i)    the trustee meets specified conditions; or

        (ii)   specified conditions are imposed on the trustee's practice; or

        (iii)  specified modifications are made to conditions on the trustee's
               practice. Note: See the definition of modifications in
               subsection 5(1).

(3) The committee may decide under paragraph (1)(b) that:

   (a)  the trustee should cease to be registered unconditionally; or

   (b)  the trustee should cease to be registered if the trustee fails to meet
        specified conditions.

(4) The committee must give the trustee and the Inspector-General a report of
its decision relating to the application, and the reasons for the decision.

(5) The trustee may apply to the Administrative Appeals Tribunal for review of
the committee's decision.

(6) The Inspector-General must give effect to the committee's decision. Note:
Sections 176 and 182 specify other circumstances in which a trustee may
involuntarily cease to be registered. 155J After termination of registration

(1) If a person ceases to be registered as a trustee for any reason, the
person must give his or her certificate of registration to the
Inspector-General, unless the person has a reasonable excuse. Penalty: 1
penalty unit.

(2) A person who ceases to be registered is not entitled to a refund of all or
part of any registration fee that the person had paid. 284 Subsection 156A(1)
Omit "Registrar", substitute "Official Receiver". 285 Subsection 156A(2)
Omit "prescribed", substitute "approved". 286 Subsection 156A(4)
Omit "Registrar for the appropriate district", substitute "Court". 287 After
subsection 156A(5)
Insert:

(5A) If the Court removes the trustee and appoints another trustee, the
creditor who applied for the removal must give the Official Receiver written
notice of the removal and appointment as soon as practicable. 288 Subsection
156A(6)
Omit "Registrar shall", substitute "Official Receiver must". 289 Subsections
157(3) and (4)
Omit "Registrar", substitute "Official Receiver". 290 Subsection 157(6)
Omit "Registrar for the appropriate district", substitute "Court". 291 After
subsection 157(7)
Insert:

(7A) If the Court cancels the appointment of a trustee and appoints another
trustee, the creditor who filed the objection must give the Official Receiver
written notice of the cancellation and appointment as soon as practicable. 292
Subsection 157(8)
Omit "Registrar shall", substitute "Official Receiver must". 293 Section 161A
Repeal the section, substitute: 161A Registered trustee to notify
Inspector-General of certain events

(1) If a registered trustee is convicted of an offence involving fraud or
dishonesty, the registered trustee must give the Inspector-General written
notice of the conviction and the nature of the offence as soon as practicable.

(2) If a registered trustee becomes a bankrupt, or enters as debtor into an
insolvency administration, under the law of a foreign country, the registered
trustee must give the Inspector-General written notice of the fact as soon as
practicable. 294 Subsections 161B(1) and (2)
Repeal the subsections, substitute:

(1) If the total remuneration payable to the trustee under section 162 would
be less than $1,109, the trustee is entitled to be paid additional
remuneration equal to the shortfall.

(2) If there are insufficient funds in the bankrupt's estate to pay the
trustee the amount (if any) payable under subsection (1), the trustee may
recover that amount from the person who is or was the bankrupt as a debt due
to the trustee by action in a court of competent jurisdiction. Note 1: The
heading to section 161B is replaced by the heading "Trustee's
remuneration-minimum entitlement". Note 2: The heading to section 162 is
replaced by the heading "Trustee's remuneration-general". 295 Subsections
162(2) and (3)
After "prescribed", insert "by the regulations". 296 Subsection 162(4)
Omit "Registrar may fix the remuneration", substitute "trustee is to be
remunerated as prescribed by the regulations". 297 Subsection 162(5)
Repeal the subsection. 298 Subsection 163(1)
After "prescribed", insert "by the regulations". 299 Subsections 163A(1) and
(2)
Omit "If the", substitute "If any". 300 Subsection 163A(2)
Omit "prescribed fee to the Official Receiver", substitute "to the Official
Receiver the fee prescribed by the regulations". 301 Subsection 163A(3)
Omit "the Official Receiver", substitute "any Official Receiver". 302 Section
164
Repeal the section, substitute: 164 Two or more trustees acting in succession

(1) If one person acts as a trustee of the estate of a bankrupt after another
person has acted as the trustee, their remuneration and expenses are to be
divided between them, if necessary, on a basis:

   (a)  that they agree on; and

   (b)  that is endorsed by a resolution passed at a meeting of the creditors.

(2) When a person (the earlier trustee) ceases to be the trustee of the estate
of a bankrupt because another person (the later trustee) has become trustee,
the earlier trustee must:

   (a)  prepare an account of his or her receipts and payments (including
        remuneration and expenses) for the period that he or she was trustee;
        and

   (b)  keep a copy of the account; and

   (c)  give each creditor a copy of the account; and

   (d)  give the later trustee a copy of the account and any other accounts
        the earlier trustee has received from a person who was the trustee
        before the earlier trustee.

(3) The later trustee must allow an officer of the Department to inspect at
any reasonable time an account received from the earlier trustee. 303
Subsections 167(1) and (2)
Repeal the subsections, substitute:

(1) The trustee of a bankrupt's estate may require a bill of costs for
services provided by a person in relation to the administration of the estate
to be taxed by a taxing officer. The trustee may make the requirement on the
trustee's own initiative, or at the request of the bankrupt or a creditor. 304
Subsection 167(3)
Omit "or bill of charges is required by this section to be taxed may at his
option", substitute "is required to be taxed may". 305 Subsection 167(4)
Omit "or a bill of charges". 306 Subsections 167(4) and (5)
Omit "or charges". 307 Subsection 167(6)
Omit "or bill of charges is required (whether by this section or by an order
of the Court) to be taxed to deliver his bill", substitute "is required to be
taxed to give the person's bill". 308 Subsection 167(9)
Repeal the subsection, substitute:

(9) In this section: taxing officer means a person appointed by the
Inspector-General for the purposes of this section. 309 Subsection 175(1)
Omit "shall furnish to the Registrar, at the prescribed times", substitute
"must give the Official Receiver, at the times prescribed by the regulations".
310 Subsection 175(2)
Omit "furnished to the Registrar", substitute "given to the Official
Receiver". 311 Paragraph 176(2)(b)
Repeal the paragraph, substitute:

   (b)  if the person is a registered trustee-an order directing the
        Inspector-General to cancel the person's registration as a trustee;
        312 Subsection 179(1)
Omit "the Registrar,". 313 Subsection 179(2)
Omit "Registrar, the". 314 Division 4A of Part VIII
Repeal the Division. 315 Subsections 182(1), (2) and (3)
Repeal the subsections, substitute:

(1) If a registered trustee becomes bankrupt, becomes a party (as debtor) to a
debt agreement or signs an authority under section 188, the trustee's
registration is cancelled. 316 Subsection 182(4)
Omit "Registrar", substitute "Official Receiver". 317 Subsection 183(3)
Repeal the subsection, substitute:

(3) In hearing the application, the Court must also consider any objection to
the order sought that is made by the Inspector-General, the Official Receiver,
a creditor or any other interested person. 318 Subsection 184(1)
Repeal the subsection, substitute:

(1) If the trustee of the estate of a bankrupt:

   (a)  is a registered trustee; and

   (b)  has not already been released from being trustee of the estate under
        section 183; the trustee is released at the end of 7 years from the
        date on which the Official Receiver entered in the National Personal
        Insolvency Index the fact that the administration of the estate was
        finalised. 319 Subsections 184A(2) to (7)
Repeal the subsections, substitute:

(2) The Official Trustee is released from being trustee of the estate of a
bankrupt at the end of 7 years from the date on which the Official Receiver
entered in the National Personal Insolvency Index the fact that the
administration of the estate was finalised. 320 After Part VIII
Insert: Part IX-Debt agreements Division 1-Definitions and procedures 185
Definitions Definitions

(1) In this Part, unless the contrary intention appears: affected creditor
means:

   (a)  in relation to a proposal to vary or terminate a debt agreement-a
        creditor who is a party (as creditor) to the agreement; or

   (b)  in relation to a debt agreement proposal-a creditor who would be a
        party to the proposed debt agreement if it were made. debtor means a
        person who is insolvent, or would be insolvent if he or she had not
        been released from debts under section 185J. frozen debt means a debt
        that:

   (a)  is owed by a debtor who has given a debt agreement proposal that has
        been accepted by the Official Trustee for processing; and

   (b)  would be provable in bankruptcy if the debtor had become a bankrupt
        when the Official Trustee accepted the debt agreement proposal for
        processing; but does not include a debt arising under a maintenance
        agreement or maintenance order (whenever entered into or made).
        provable debt, in relation to a debt agreement, means a debt that
        would have been provable in bankruptcy if the debtor had become a
        bankrupt when the making of the debt agreement was recorded in the
        National Personal Insolvency Index. Deadline for a proposal

(2) The deadline for a proposal is:

   (a)  if it is a debt agreement proposal-the end of the 25th working day
        after the Official Trustee accepted the proposal for processing; or

   (b)  if it is a proposal to vary or terminate a debt agreement-the end of
        the 25th working day after the proposal was given to the Official
        Trustee. Working day

(3) For the purposes of subsection (2), a working day is:

   (a)  in relation to a debt agreement proposal-a day that is not a Saturday,
        Sunday or a public holiday in the District in which the proposal was
        accepted for processing; or

   (b)  in relation to a proposal to vary or terminate a debt agreement-a day
        that is not a Saturday, Sunday or public holiday in the District in
        which the proposal for the debt agreement was accepted for processing.
        185A Procedures for dealing with proposals Processing of proposals by
        the Official Trustee

(1) Whenever the Official Trustee is required by this Part to process a
proposal relating to a debt agreement, the Official Trustee must:

   (a)  call a meeting of the affected creditors who are known to the Official
        Trustee to allow those creditors to consider the proposal; or

   (b)  write to each of the affected creditors who is known to the Official
        Trustee, asking each affected creditor to indicate whether the
        proposal should be accepted. Meetings to deal with a proposal

(2) Division 5 of Part IV, with any modifications prescribed by the
regulations, applies in relation to any meeting called by the Official Trustee
under paragraph (1)(a) as if:

   (a)  the debtor were a bankrupt; and

   (b)  the Official Trustee were the trustee of the debtor's estate in
        bankruptcy. Writing to creditors to deal with a proposal

(3) When writing to each affected creditor under paragraph (1)(b) about a
proposal, the Official Trustee must:

   (a)  explain the proposal; and

   (b)  ask the creditor to state in writing whether or not the proposal
        should be accepted; and

   (c)  inform the creditor of the person to whom the statement should be
        given and of the need to give the statement before the deadline. 185B
        Acceptance of a proposal Acceptance by special resolution

(1) A proposal is accepted if a meeting of affected creditors passes a special
resolution before the deadline accepting the proposal. Timing of acceptance by
special resolution

(2) A proposal accepted under subsection (1) is accepted at the time the
special resolution is passed. Acceptance in writing

(3) A proposal is also accepted if:

   (a)  the Official Trustee writes to affected creditors of a debtor under
        section 185A; and

   (b)  a majority in number, and at least three-quarters in value, of the
        creditors who reply before the deadline state that the proposal should
        be accepted. Timing of acceptance of a proposal in writing

(4) A proposal that is accepted under subsection (3) is taken to be accepted
at the deadline. Value of a creditor

(5) In assessing the value of a creditor for the purposes of paragraph (3)(b),
any debt that was assigned to the creditor is taken to have a value equal to
the value of the consideration that the creditor gave for the assignment.
Division 2-Debt agreement proposals 185C Giving a debt agreement proposal to
the Official Trustee Giving a debt agreement proposal

(1) A debtor may give the Official Trustee a written proposal for a debt
agreement. Requirements for a debt agreement proposal

(2) A debt agreement proposal must:

   (a)  identify the debtor's property that is to be dealt with under the
        agreement; and

   (b)  specify how the property is to be dealt with; and

   (c)  authorise a specified person (being the Official Trustee, a registered
        trustee or another person) to deal with the identified property in the
        way specified. What a debt agreement proposal may include

(3) A debt agreement proposal may provide for any matter relating to the
debtor's financial affairs. If the person specified under paragraph (2)(c) is
not the Official Trustee, the proposal may also provide for the remuneration
of that person. When a debtor cannot give a debt agreement proposal

(4) A debtor cannot give the Official Trustee a debt agreement proposal at a
particular time (the proposal time) if:

   (a)  at any time in the 10 years immediately before the proposal time the
        debtor:

        (i)    has been a bankrupt; or

        (ii)   has been a party (as debtor) to a debt agreement; or

        (iii)  has given an authority under section 188; or

   (b)  at the proposal time the debtor's unsecured debts total more than:

        (i)    the threshold amount; or

        (ii)   if the regulations prescribe a greater amount for this
               purpose-the amount prescribed; or

   (c)  at the proposal time, the value of the debtor's property that would be
        divisible among creditors if the debtor were bankrupt is more than the
        threshold amount; or

   (d)  the debtor's after tax income (see subsection (5)) in the year
        beginning at the proposal time is likely to exceed half the threshold
        amount.

(5) In this section:
after tax income, in relation to a debtor and a year, means the amount that is
likely to be the taxable income of the debtor for the year less the income tax
and the medicare levy imposed on that taxable income (worked out treating the
year as a year of income if it is not actually a year of income). Note: For
the purposes of this definition, taxable income, income tax and year of income
have the same meanings as in the Income Tax Assessment Act 1936, and medicare
levy means the levy imposed by the Medicare Levy Act 1986.
threshold amount, in relation to a particular time, means 7 times the amount
that, at that time, is specified in column 3, item 2, Table B, point 1064-B1,
Pension Rate Calculator A, in the Social Security Act 1991.
unsecured debt includes the amount by which the value of a debt exceeds the
value of a security given for the debt. 185D Statement of affairs to be given
with a debt agreement proposal
A debtor who gives the Official Trustee a debt agreement proposal must give
the Official Trustee a statement of the debtor's affairs with the proposal.
Note: Section 6A sets out requirements for statements of affairs. 185E
Accepting a debt agreement proposal for processing

(1) Before accepting a debt agreement proposal for processing, the Official
Trustee must give the debtor the information prescribed by the regulations.

(2) If a debtor gives the Official Trustee a debt agreement proposal, the
Official Trustee may accept the proposal for processing if the Official
Trustee thinks that subsections 185C(2) and (4) have been complied with and
the statement of affairs accompanying the proposal is in order.

(3) The Official Trustee must not accept a debt agreement proposal for
processing if the Official Trustee thinks that the creditors' interests would
be better served by not accepting the proposal for processing.

(4) A debtor who gives the Official Trustee a debt agreement proposal may
apply to the Administrative Appeals Tribunal for review of the Official
Trustee's decision on whether to accept the proposal for processing.

(5) If the Official Trustee accepts a debt agreement proposal for processing,
the Official Trustee must process the proposal.

(6) If the Official Trustee processes the proposal by writing to creditors
under section 185A, the Official Trustee must:

   (a)  ask each creditor to include with the creditor's statement the
        following information for each debt owed to the creditor by the
        debtor:

        (i)    the amount of the debt;

        (ii)   whether the creditor holds a security for the debt;

        (iii)  if the creditor holds a security-the creditor's estimate of the
               value of the security and the value of the debt after deducting
               the value of the security;

        (iv)   the transaction and circumstances that gave rise to the debt;

        (v)    whether the debt was assigned to the creditor;

        (vi)   if the debt was assigned to the creditor-the value of the
               consideration that the creditor gave for the assignment; and

   (b)  give each creditor a summary of the debtor's statement of affairs.
        185F Effect of accepting a debt agreement proposal for processing

(1) After acceptance of a debt agreement proposal for processing is recorded
in the National Personal Insolvency Index:

   (a)  a creditor cannot apply for enforcement of, or enforce, a remedy
        against the debtor's person or property in respect of a frozen debt;
        and

   (b)  a sheriff must not take action, or further action, to execute, or sell
        property under, any process issued by a court to enforce payment of a
        frozen debt owed by the debtor; and

   (c)  a person who is entitled under a law of the Commonwealth, or of a
        State or Territory of the Commonwealth, to retain or deduct money from
        money that is or will be owing or payable to the debtor must not
        retain or deduct money; until any of the following events occurs:

   (d)  the deadline arrives;

   (e)  the proposal is rejected by the creditors at a meeting;

   (f)  the proposal lapses.

(2) Subsection (1) does not prevent a creditor from:

   (a)  starting a legal proceeding in respect of a frozen debt; or

   (b)  taking a fresh step in such a proceeding (except to enforce a
        judgment). 185G Lapsing of a debt agreement proposal
A debt agreement proposal lapses if:

   (a)  the Official Trustee accepts the proposal for processing and calls a
        meeting of affected creditors to consider it, but the creditors do not
        pass a special resolution accepting the proposal before the deadline;
        or

   (b)  the Official Trustee accepts the proposal for processing and writes to
        affected creditors about it, but no replies are received before the
        deadline; or

   (c)  the debtor dies after giving the proposal to the Official Trustee but
        before a debt agreement is made on the basis of the proposal. Note:
        Section 185H deals with the making of a debt agreement. Division
        3-Making a debt agreement 185H Making a debt agreement
A debt agreement is made in the terms of a debt agreement proposal when the
proposal is accepted. Note: Section 185B explains how a proposal is accepted.
185I Parties to a debt agreement
The parties to a debt agreement are:

   (a)  the debtor; and

   (b)  the creditors to whom the debtor owed debts immediately before the
        debt agreement was made. 185J Release of debtor from debts Time and
        effect of release

(1) When details of a debt agreement are entered in the National Personal
Insolvency Index, the debtor is released from provable debts from which the
debtor would have been released if he or she had been discharged from
bankruptcy immediately after the details were entered in the Index. End of
release

(2) The release ceases to operate if the debt agreement:

   (a)  is terminated under section 185P, 185Q or 185R; or

   (b)  is declared void by the Court. Limits on release

(3) The release does not:

   (a)  release anyone else from a debt that he or she owes jointly with the
        debtor; or

   (b)  release a guarantor from the guarantee that the guarantor gave for the
        debtor's debt; or

   (c)  prevent a secured creditor from dealing with a security to obtain
        payment of a secured debt, or part of a secured debt, for which the
        creditor has not made a claim:

        (i)    in a statement under section 64D as it is applied by subsection
               185A(2); or

        (ii)   under subparagraph 185E(6)(a)(i). 185K Prevention of
               proceedings relating to debts

(1) While a debt agreement is in force and details of it are entered on the
National Personal Insolvency Index, a creditor cannot:

   (a)  present a creditor's petition against the debtor; or

   (b)  proceed further with a creditor's petition that was presented against
        the debtor before details of the debt agreement were entered in the
        Index; or

   (c)  enforce a remedy against the debtor's person or property, or start or
        take a fresh step in legal proceedings, in respect of a debt that
        would have been provable had the debtor become bankrupt when details
        of the debt agreement were entered in the Index.

(2) Paragraph (1)(c) does not prevent a creditor from enforcing a remedy
against the debtor or the debtor's property for a liability under a
maintenance agreement or maintenance order. 185L Distribution of property
under a debt agreement
If:

   (a)  the property subject to a debt agreement is not sufficient to pay in
        full, or to the extent provided by the agreement, all the debtor's
        provable debts; and

   (b)  the debt agreement does not specify how the property is to be
        distributed among the creditors; the property must be distributed
        among the creditors in proportion to the provable debts. Division
        4-Varying a debt agreement 185M Varying a debt agreement Proposing to
        vary a debt agreement

(1) A debtor or creditor who is a party to a debt agreement may give the
Official Trustee a written proposal to vary the agreement. Processing a
proposal to vary a debt agreement

(2) The Official Trustee must process the proposal. Note: Section 185A
explains what is involved in processing a proposal. Varying the agreement

(3) If the proposal is accepted, the agreement is varied in the way set out in
the proposal. Note: Section 185B explains how a proposal is accepted. Division
5-Ending a debt agreement 185N End of debt agreement on discharge of
obligations under agreement Time of end of debt agreement

(1) A debt agreement ends when all the obligations that it created have been
discharged, unless the agreement has been terminated earlier under section
185P, 185Q or 185R. Keeping surplus property that was subject to an agreement

(2) When a debt agreement ends under subsection (1), the debtor is entitled to
any property that was subject to the debt agreement but that was not required
by the agreement to be distributed to creditors. Example: Rhea entered into a
debt agreement that required her to sell her boat and car and to pay her
creditors $15,000 from the proceeds. The debt agreement ended when she sold
her boat and car for $16,000 and paid her creditors $15,000. She may keep the
remaining $1,000 received from the sale. Certificate of the end of a debt
agreement

(3) If a debt agreement ends under subsection (1), the Official Trustee must
give the debtor a certificate to that effect. Evidentiary value of certificate

(4) The certificate is prima facie evidence of the facts stated in it. 185P
Terminating a debt agreement by accepting a proposal Proposing to terminate a
debt agreement

(1) The debtor (or the debtor's personal representative if the debtor has
died) or a creditor who is bound by a debt agreement may give the Official
Trustee a written proposal to terminate the agreement. Processing a proposal
to terminate debt agreement

(2) The Official Trustee must process the proposal. Note: Section 185A
explains what is involved in processing a proposal. Termination of the debt
agreement when the proposal is accepted

(3) The debt agreement is terminated when the proposal is accepted. Note:
Section 185B explains how a proposal is accepted. 185Q Terminating a debt
agreement by order of the Court Applying for an order

(1) Any of the following persons may apply to the Court for an order
terminating a debt agreement:

   (a)  the debtor (or the debtor's personal representative if the debtor has
        died);

   (b)  a creditor of the debtor;

   (c)  the Official Trustee. Simultaneous application for a sequestration
        order

(2) A creditor may include an application for a sequestration order in an
application for an order terminating a debt agreement. Effect of applying for
a sequestration order

(3) For the purposes of this Act, making an application for a sequestration
order under subsection (2) is taken to be presenting a creditor's petition
against the debtor, but subsection 43(1), sections 44 and 47, subsections
52(1) and (2) and Part XIA do not apply in relation to the application.
Prerequisites for making an order terminating a debt agreement

(4) The Court may make an order terminating a debt agreement if it is
satisfied:

   (a)  that the debtor (or the debtor's personal representative if the debtor
        has died) has failed to carry out a term of the agreement and that it
        is in the creditors' interest to terminate the agreement; or

   (b)  that carrying out the agreement would cause injustice or undue delay
        to the creditors or the debtor (or the debtor's estate if the debtor
        has died); or

   (c)  that for any other reason the agreement should be terminated and that
        it is in the creditors' interest to do so. Sequestration order

(5) If the Court makes an order terminating a debt agreement, the Court may
also make a sequestration order if a creditor applied for the sequestration
order. 185R Terminating a debt agreement by the bankruptcy of the debtor
A debt agreement is terminated if the debtor becomes a bankrupt. Note: Despite
section 185K, there are a number of ways in which a debtor who is a party to a
debt agreement could become bankrupt. For example, the debtor could become
bankrupt on a debtor's petition if the Court gave permission for the debtor to
present, or join in presenting, the petition, or the debtor could become
bankrupt as a result of the presentation of a petition against a partnership.
185S Validity of things done under a debt agreement that was terminated
If a debt agreement is terminated under section 185P, 185Q or 185R, anything
that was done in good faith under the agreement by a person before the person
had notice of the termination:

   (a)  is valid; and

   (b)  cannot be voided by a trustee under section 120, 121 or 122 (whether
        applying of its own force or under subsection 231(2)). Note: This
        section does not preserve a release from debts under a debt agreement
        that is terminated: see paragraph 185J(2)(a). Division 6-Voiding a
        debt agreement 185T Applying for an order declaring a debt agreement
        void Persons who may apply for an order

(1) The debtor (or the debtor's personal representative if the debtor has
died), a creditor or the Official Trustee may apply to the Court for an order
declaring that all, or a specified part, of a debt agreement is void. Grounds
for applying for an order

(2) A person mentioned in subsection (1) may apply for an order only if:

   (a)  there is doubt on a specific ground that all or part of the debt
        agreement was not made in accordance with this Part or does not comply
        with this Part; or

   (b)  the statement of affairs lodged with the debt agreement was deficient
        because it omitted a material particular or because it was incorrect
        in a material particular. Time limit on applying for an order

(3) A person cannot apply for an order declaring a debt agreement void after
all the obligations created by the agreement have been discharged.
Simultaneous application for a sequestration order

(4) A creditor may include an application for a sequestration order in an
application for an order declaring all or part of a debt agreement void.
Effect of applying for a sequestration order

(5) For the purposes of this Act, making an application for a sequestration
order under subsection (4) is taken to be presenting a creditor's petition
against the debtor, but subsection 43(1), sections 44 and 47, subsections
52(1) and (2) and Part XIA do not apply in relation to the application. 185U
Making an order declaring a debt agreement void Power to make order

(1) On an application under section 185T, the Court may make an order
declaring a debt agreement void. Limit on declaring debt agreement void on
grounds of non-compliance with this Part

(2) The Court must not declare all or part of a debt agreement void on the
ground that it does not comply with this Part if the agreement or part of the
agreement complies substantially with this Part. Declaring a debt agreement
void on grounds of deficient statement of affairs

(3) The Court must not declare all or part of a debt agreement void on the
ground that the statement of affairs lodged with the debt agreement was
deficient, unless the Court is satisfied that it is in the creditors'
interests to declare the agreement or part of the agreement void.
Sequestration order

(4) If the Court makes an order declaring all of a debt agreement void, the
Court may also make a sequestration order if a creditor applied for the
sequestration order. 185V Validity of things done under a debt agreement that
was declared void
If a debt agreement is declared void, anything that was done in good faith
under the agreement by a person before the person had notice of the
declaration:

   (a)  is valid; and

   (b)  cannot be voided by a trustee under section 120, 121 or 122 (whether
        applying of its own force or under subsection 231(2)). Note: This
        section does not preserve a release from debts under a debt agreement
        that is declared void: see paragraph 185J(2)(b). Division
        7-Miscellaneous 185W Court directions to the Official Trustee

(1) Any of the following persons may apply to the Court for an order directing
the Official Trustee or another person how to exercise the Official Trustee's
powers under this Part:

   (a)  a debtor who is a party to a debt agreement (or the debtor's personal
        representative if the debtor has died);

   (b)  a creditor who is a party to a debt agreement;

   (c)  the Official Trustee.

(2) On an application under subsection (1), the Court may make an order
directing the Official Trustee or another person how to exercise the Official
Trustee's powers under this Part. Note: Other persons who might be exercising
the Official Trustee's powers are an Official Receiver (see subsection 18(8))
or a registered trustee to whom powers have been delegated (see section 185Y).
185X No stamp duty payable on a debt agreement
Stamp duty under a State or Territory law is not payable on a debt agreement
or a variation of a debt agreement. 185Y Delegation of powers and functions
relating to processing of proposals

(1) The Official Trustee may delegate to a registered trustee all or any of
the Official Trustee's processing powers and functions in relation to a
particular:

   (a)  debt agreement proposal that has been accepted for processing; or

   (b)  proposal to vary a debt agreement; or

   (c)  proposal to terminate a debt agreement.

(2) A delegation can only be made with the written consent of the debtor and
the registered trustee.

(3) A delegation must be in writing.

(4) A delegation is subject to any conditions:

   (a)  specified in the instrument of delegation; or

   (b)  specified by the Official Trustee by notice in writing given to the
        registered trustee.

(5) The Official Trustee's processing powers and functions in relation to a
proposal are:

   (a)  if it is a debt agreement proposal-the powers and functions of the
        Official Trustee in relation to the proposal under subsections 185E(5)
        and (6) and section 185A (including the provisions applied by
        subsection 185A(2)); or

   (b)  if it is a proposal to vary a debt agreement-the powers and functions
        of the Official Trustee in relation to the proposal under subsection
        185M(2) and section 185A (including the provisions applied by
        subsection 185A(2)); or

   (c)  if it is a proposal to terminate a debt agreement-the powers and
        functions of the Official Trustee in relation to the proposal under
        subsection 185P(2) and section 185A (including the provisions applied
        by subsection 185A(2)). Note: An Official Receiver may exercise powers
        of the Official Trustee under this section (see subsection 18(8)).
        185Z Remuneration of registered trustees and other persons

(1) A person (other than the Official Trustee) who is dealing with property
under a debt agreement may be remunerated as provided in the agreement (see
subsection 185C(3)). Note: For the remuneration payable to the Official
Trustee, see section 163.

(2) A registered trustee to whom powers or functions have been delegated under
section 185Y is not entitled to be remunerated for, or to be reimbursed for
costs incurred in, the exercise or performance of those powers or functions.
321 Subsection 187(1)
Insert:
controlling trustee, in relation to a debtor whose property is subject to
control under Division 2, means the person who is the controlling trustee
under section 188 or 192. 322 Subsection 187(1) (definition of debtor)
Omit "unable to pay his debts as they become due out of his own moneys",
substitute "insolvent". 323 Subsection 187(1) (definition of the controlling
trustee)
Repeal the definition. 324 Subsection 187(1) (definition of the Registrar)
Repeal the definition. 325 Subsection 187(1A)
Omit all the words after "being", substitute "insolvent, even if the person
may ultimately cease to be insolvent". 326 Subsection 188(1)
Omit "prescribed form:", substitute "approved form naming and authorising a
registered trustee, a solicitor or the Official Trustee to call a meeting of
the debtor's creditors and to take control of the debtor's property.". Note:
The heading to section 188 is altered by omitting "call meeting of creditors
etc." and substituting "be controlling trustee". 327 Paragraphs 188(1)(e) and
(f)
Repeal the paragraphs. 328 Paragraph 188(2)(a)
Repeal the paragraph, substitute:

   (a)  if the person authorised is a registered trustee or solicitor-the
        person has consented in writing to exercise the powers given by the
        authority; and

   (aa) if the person authorised is the Official Trustee-an Official Receiver
        has given the debtor written approval to name the Official Trustee in
        the authority; and 329 Paragraph 188(2)(b)
Omit "witness; and", substitute "witness.". 330 Paragraph 188(2)(c)
Repeal the paragraph. 331 Subsection 188(4)
Repeal the subsection, substitute:

(4) Subject to subsection 192(1), a debtor cannot give an authority within 6
months of giving another authority, unless the Court grants leave to do so.

(5) A registered trustee or solicitor who consents to exercise the powers
given by an authority must, within 14 days of consenting, give a copy of the
authority to the Official Receiver for the District in which the debtor
resides.

(6) When an authority becomes effective, the person authorised by it becomes
the controlling trustee. 332 After section 188
Insert: 188A Statement of debtor's affairs and proposal for dealing with them
Within 14 days after an authority under section 188 becomes effective, the
debtor must give the controlling trustee a statement of the debtor's affairs
and a proposal for dealing with them under this Part. 333 Subsection 189(1)
Repeal the subsection, substitute:

(1) When an authority given by a debtor under section 188 becomes effective,
the property of the debtor becomes subject to control under this Division.

(1A) The control continues until one of the following events happens:

   (a)  the creditors resolve at a meeting called under this Part that the
        property cease to be subject to control;

   (b)  the debtor and a trustee make a deed of assignment or a deed of
        arrangement following a special resolution of creditors;

   (c)  the creditors accept a composition under this Division;

   (d)  4 months pass since the authority under section 188 became effective;

   (e)  the Court, under section 208, releases the property from control;

   (f)  the debtor becomes a bankrupt;

   (g)  the debtor dies. Note: The heading to section 189 is replaced by the
        heading "Control of property of a debtor who has given authority under
        section 188". 334 After section 189
Insert: 189AA Court orders with effect during period of control of debtor's
property

(1) The Court may make an order that has effect while the property of the
debtor is subject to control:

   (a)  discharging an order made at any time against the person or property
        of the debtor under a law relating to the imprisonment of fraudulent
        debtors; or

   (b)  staying a civil or criminal legal process begun at any time against
        the person or property of the debtor for the debtor's failure:

        (i)    to pay a debt that would be provable if the debtor were
               bankrupt; or

        (ii)   to pay a pecuniary penalty payable as a result of the failure
               to pay a debt that would be provable if the debtor were
               bankrupt; or

        (iii)  to obey an order of a court to pay a debt that would be
               provable if the debtor were bankrupt; or

   (c)  if the debtor has been imprisoned under a law described in paragraph
        (a) or for a failure described in paragraph (b)-releasing the debtor
        from custody.

(2) Paragraph (1)(b) does not allow the Court to stay any proceedings under
the Proceeds of Crime Act 1987 or a corresponding law. 189AB Charge over
debtor's property that is subject to control Creation of charge

(1) When the debtor's property becomes subject to control under this Division,
the debtor's property is charged with:

   (a)  the debtor's unsecured debts at the time the debtor signed the
        authority under section 188; and

   (b)  any amount by which the debtor's secured debts exceeded the value of
        the property secured for payment of the debts at the time the debtor
        signed the authority under section 188. Charge continues despite
        changing ownership of charged property

(2) Subject to subsections (3) and (9), the charge is not affected by any
change of ownership of the charged property. Certain other charges have
priority

(3) The charge created by subsection (1) is subject to:

   (a)  any charge or encumbrance that was on the debtor's property
        immediately before the debtor signed the authority under section 188;
        and

   (b)  any charge or encumbrance acquired in good faith and for market value
        by a person who did not have notice of the charge created by
        subsection (1). Priority over some other charges

(4) The charge created by subsection (1) has priority over a charge or
encumbrance that is not described in subsection (3). Registration of charge

(5) The controlling trustee may register a charge created by subsection (1)
over particular property if a law of the Commonwealth, or of a State or
Territory, provides for registration of a charge over that sort of property.
Effect of registration of charge

(6) If the trustee registers the charge over particular property, a person who
acquires the property or an interest in the property after the charge is
registered is taken to have notice of the charge for the purposes of
subsections (3) and (9). Controlling trustee may sell charged property

(7) The controlling trustee may sell property that is subject to a charge
under subsection (1). Application of proceeds of sale

(8) Any proceeds from the sale of charged property that are not needed to meet
a charge or encumbrance that has higher priority than the charge created by
subsection (1) are the debtor's property. End of charge on property that is
sold

(9) A charge created by subsection (1) ceases to have effect in relation to
property if the property is acquired by a person:

   (a)  in good faith for consideration at least as valuable as the market
        value of the property without notice of the charge; or

   (b)  from the controlling trustee in a sale under subsection (7). Charge
        ends when property ceases to be subject to control

(10) Unless it has already ceased to have effect under subsection (9), the
charge ceases to have effect when control of the debtor's property ends under
subsection 189(1A). Meaning of debtor's property

(11) In this section:
debtor's property has the meaning given in subsection 190(5). 335 Sections
189A and 189B
Repeal the sections, substitute: 189A Report by controlling trustee

(1) The controlling trustee must prepare a report:

   (a)  summarising and commenting on the information about the debtor's
        affairs that is available to the controlling trustee; and

   (b)  if the debtor has given the controlling trustee a proposal for dealing
        with the debtor's affairs under this Part-stating whether the
        controlling trustee believes that creditors' interests would be better
        served by accepting the proposal or by the bankruptcy of the debtor.

(2) The trustee must:

   (a)  give a copy of the report to the Official Receiver and to each of the
        creditors; and

   (b)  keep a copy of the report. 189B Controlling trustee to prepare
        statement about possible resolutions

(1) A controlling trustee under an authority under section 188 must prepare a
written statement about the special resolutions under section 204 that may
reasonably be expected to be passed at a meeting of creditors called under the
authority.

(2) The trustee must:

   (a)  give a copy of the statement to the Official Receiver and to each of
        the creditors; and

   (b)  keep a copy of the statement. 336 Subsection 190(1)
Repeal the subsection, substitute:

(1) The controlling trustee must call a meeting of the debtor's creditors
under this Division. Note: The heading to section 190 is altered by omitting
"trustee or solicitor" and substituting "controlling trustee". 337 Subsection
190(2)
Omit "Where a registered trustee consents to exercise the powers conferred by
such an authority, he is, by force of this section,", substitute "The
controlling trustee is". 338 Subsection 190(3)
Repeal the subsection. 339 After subsection 190(4)
Insert:

(4A) The controlling trustee or any person affected by an act or omission of
the controlling trustee may apply to the Court for directions on a matter
connected with control of the debtor's property under this Division.

(4B) The Court may make any orders it thinks just on a matter raised by an
application. 340 Subsection 190(5)
Omit "a registered trustee". 341 Section 191
Omit "trustee" (first occurring), substitute "controlling trustee". 342
Section 191
Omit "pay out of the debtor's moneys any debts of the debtor", substitute
"make any payments from the debtor's money". 343 Section 192
Repeal the section, substitute: 192 Changing the controlling trustee

(1) If a registered trustee or solicitor who has consented to exercise the
powers given by an authority under section 188:

   (a)  dies; or

   (b)  ceases to be a registered trustee or solicitor; or

   (c)  becomes incapable of exercising his or her powers under this Part; or

   (d)  gives the Official Trustee a written request to be relieved of duties
        under this Part; then:

   (e)  the Official Trustee becomes the controlling trustee; and

   (f)  the debtor may sign a new authority under section 188.

(2) If the debtor signs a new authority under section 188 naming a registered
trustee or solicitor, the registered trustee or solicitor becomes the
controlling trustee when he or she consents to exercise the powers given by
the authority.

(3) If:

   (a)  a meeting of creditors or the Court nominates a registered trustee or
        the Official Trustee to be the trustee of a deed of assignment or a
        deed of arrangement; and

   (b)  the nominated trustee is not already the controlling trustee; the
        nominated trustee becomes the controlling trustee when the nominated
        trustee consents to act as trustee of the deed.

(4) A person who becomes the controlling trustee under this section:

   (a)  has the same powers and duties as the person originally authorised by
        the debtor under section 188; and

   (b)  is taken for the purposes of this Division to have done any act or
        thing duly done earlier by an earlier controlling trustee. 344
        Sections 193 and 194
Repeal the sections, substitute: 194 Time for calling meeting
The meeting that is to be called under an authority under section 188 must be
held:

   (a)  not more than 35 days after the debtor signed the authority; or

   (b)  if the debtor signed the authority in December-not more than 42 days
        after the debtor signed the authority. 345 After subsection 195(1)
Insert:

(2) At the meeting, the debtor must help the person presiding to the best of
the debtor's knowledge and ability. 346 Subsection 195(3A)
Omit "acting as". 347 Sections 196 to 203
Repeal the sections, substitute: 196 Procedure for calling and holding meeting
Division 5 of Part IV applies, with any modifications prescribed by the
regulations, in relation to a meeting called under an authority under section
188 as if:

   (a)  the debtor who signed the authority were bankrupt; and

   (b)  the controlling trustee were the trustee in the bankruptcy. 348
        Subsections 204(4) and (5)
Omit "registered" (wherever occurring). 349 Subsections 204(7) and (8)
Repeal the subsections, substitute:

(7) In this section: trustee means registered trustee or Official Trustee. 350
Subsection 205(2)
Omit "notice in accordance with the prescribed form, being a notice in the
form of a statutory declaration, specifying such particulars of the
maintenance agreement or maintenance order as are required by the form",
substitute "written notice setting out details of the maintenance agreement or
maintenance order". 351 Subsection 205(4)
Omit "notice in accordance with the prescribed form, being a notice in the
form of a statutory declaration, specifying such particulars of the
maintenance agreement or maintenance order as are required by the form",
substitute "written notice setting out details of the maintenance agreement or
maintenance order". 352 Subsection 206(2)
Omit "Registrar shall", substitute "creditor who presents the petition must".
353 At the end of subsection 206(2)
Add "and to the Official Receiver". 354 Section 208
Repeal the section, substitute: 208 Termination of control of debtor's
property by the Court
The Court may make an order releasing the debtor's property from control under
this Division if:

   (a)  an interested person applies to the Court for such an order; and

   (b)  the Court is satisfied that special circumstances justify it making
        the order. 355 Paragraph 209(a)
Omit "to a registered trustee". 356 Sections 210 to 212B
Repeal the sections, substitute: 210 Other provisions about controlling
trustee
Part VIII, with any modifications prescribed by the regulations, applies in
relation to the controlling trustee in relation to a debtor as if:

   (a)  the debtor were a bankrupt; and

   (b)  the controlling trustee were the trustee of the estate of the bankrupt
        debtor. 357 Division 2A of Part X
Repeal the Division. 358 Paragraph 214(2)(b)
Omit "prescribed", substitute "approved". 359 Section 215
Repeal the section, substitute: 215 Prerequisites for trustee of deed or
composition
Only a registered trustee or the Official Trustee can be a trustee of a deed
or composition under this Part. 360 Subsection 215A(1)
Repeal the subsection, substitute:

(1) A resolution that is passed at a meeting of creditors and purports to:

   (a)  nominate one or more persons under subsection 204(4) to be a trustee
        or trustees; or

   (b)  appoint a person under subsection 220(1) to a vacant office of trustee
        of a deed of assignment, deed of arrangement or composition; is void
        unless the person or each of the persons gave written consent before
        the meeting to act as a trustee of the deed or composition.

(1A) As soon as possible after the resolution is passed, each person (except
the Official Trustee) nominated or appointed by the resolution must give to
the Official Receiver a copy of the consent that relates to that person. 361
Section 215B
Repeal the section. 362 Subsection 217(1)
Omit "rules", substitute "regulations". 363 Subsection 217(2)
Omit "Registrar", substitute "Court". 364 Paragraph 218(1)(a)
Repeal the paragraph, substitute:

   (a)  notify each creditor of the debtor as soon as practicable after the
        debtor and the trustee have executed the deed; and 365 Paragraph
        218(1)(b)
Omit "Registrar", substitute "Official Receiver". 366 Subsection 218(2)
Repeal the subsection, substitute:

(2) As soon as practicable after a special resolution accepting a composition
is passed under section 204, the trustee of the composition must notify each
creditor of the debtor that the special resolution has been passed.

(3) A trustee must notify creditors under paragraph (1)(a) or subsection (2)
in the way prescribed by the regulations. 367 Subsection 220(2)
Omit "on the report of the Registrar or". 368 Paragraph 221(1)(b)
Omit all the words after "arrangement", substitute ", has failed without
sufficient cause to execute the deed within the time prescribed by this Act;
or". 369 Subsection 221(1)
Omit ", a person authorised in writing by the Inspector-General". 370
Subsection 222(1)
Omit "a person authorised in writing by the Inspector-General, the
Registrar,". 371 Subsection 222(4)
Omit "a person authorised in writing by the Inspector-General,". 372
Subsection 222(10)
Repeal the subsection. 373 Subsection 223(2)
Repeal the subsection. 374 Subsection 223(3)
Omit all the words from and including "for the purposes", substitute "for the
purposes of appointing a trustee of the deed or composition". 375 Section 223A
Repeal the section, substitute: 223A Rules in relation to meetings

(1) Division 5 of Part IV applies, with any modifications prescribed by the
regulations, in relation to a meeting called under section 223 as if:

   (a)  the debtor who signed the authority under section 188 were bankrupt;
        and

   (b)  the person who called the meeting were the trustee in the bankruptcy.

(2) Section 195 applies, with any modifications prescribed by the regulations,
in relation to a meeting called under section 223 as if references in section
195 to the controlling trustee included references to the trustee of a deed of
assignment, a deed of arrangement or a composition. 376 Subsections 224A(1)
and (2)
Omit "Registrar", substitute "Official Receiver". 377 Subsection 224A(3)
Repeal the subsection, substitute:

(3) If:

   (a)  the Court makes an order:

        (i)    declaring void a deed of assignment, a deed of arrangement or a
               composition; or

        (ii)   terminating a deed of arrangement or a composition; or

        (iii)  setting aside a composition; and

   (b)  a registered trustee was the trustee of the deed or composition; the
        registered trustee must give written notice of the order to the
        Official Receiver. 378 Subsections 226(3) and (4)
Omit "prescribed fee", substitute "fee prescribed by the regulations". 379
Subsections 226(3) and (4)
Omit "Registrar", substitute "Official Receiver". 380 Subsections 231(4),
237(4) and 243(3)
Omit "Subsections 157(6) and (7) and sections 162 to 184 (inclusive) apply,
with the prescribed modifications (if any)", substitute "Part VIII applies,
with any modifications prescribed by the regulations". 381 Subsection 243(1)
Omit "82", substitute "81". 382 Subsection 244(1)
Omit "$1,500" (wherever occurring), substitute "$2,000". 383 Subsection 244(7)
Omit "the prescribed time", substitute "3 months". 384 At the end of section
244
Add:

(14) If the Court makes an order that the estate be administered under this
Part, the creditor who obtained the order must give a copy of the order to the
Official Receiver. 385 Subsection 245(1)
Omit "or under the repealed Act". 386 At the end of section 245
Add:

(3) If the Court makes an order that the estate be administered under this
Part, the creditor who obtained the order must give a copy of the order to the
Official Receiver. 387 Paragraph 246(1)(a)
Omit "and file in the office of the Registrar for the District in which the
order was made". Note: The heading to section 246 is altered by omitting
"Filing of statement" and substituting "Statement". 388 Paragraph 246(1)(b)
Repeal the paragraph, substitute:

   (b)  give a copy of the statement to the Official Receiver. 389 At the end
        of subsection 246(1)
Add: Penalty: 5 penalty units. 390 Subsections 246(2) and (3)
Repeal the subsections. 391 Subsection 246(5)
Omit "prescribed fee", substitute "fee prescribed by the regulations". 392 At
the end of section 246
Add:

(6) If the trustee of the estate is a registered trustee, the Official
Receiver must give the trustee a copy of the order and a copy of the statement
of affairs. 393 Subsection 248(1)
Omit "sections 64 to 68 (inclusive)", substitute "Division 5 of Part IV". 394
Subsection 248(1)
Omit "138H", substitute "139H". 395 Subsection 248(1)
Omit "the prescribed modifications (if any)", substitute "any modifications
prescribed by the regulations". 396 Subsection 248(3)
Omit "rules", substitute "regulations". 397 Subsections 252A(2), (4) and (5)
Omit "Registrar" (wherever occurring), substitute "Official Receiver". 398
Subsection 252A(3)
Repeal the subsection. 399 Section 253C
Repeal the section, substitute: 253C Notice about stay under proclaimed law
The relevant authority may give to the Official Receiver a written notice that
a stay under a proclaimed law applies to a person specified in the notice. 400
Section 253D
Repeal the section. 401 Subsection 253E(1)
Omit "Registrar", substitute "Official Receiver". 402 Section 253F
Repeal the section, substitute: 253F Relevant authority may be heard on
application relating to debtor's petition

(1) The relevant authority may appear and be heard at the hearing of:

   (a)  an application under subsection 55(6A) for leave to present a petition
        against a debtor in relation to whom a stay applies under a proclaimed
        law; or

   (b)  an application under subsection 56A(7) by a person to whom a stay
        under a proclaimed law applies for the Court's permission to join in
        presenting a petition against a partnership; or

   (c)  an application under subsection 57(8) by a person in relation to whom
        a stay under a proclaimed law applies for leave to join in presenting
        a petition under section 57.

(2) The relevant authority may appear in person or be represented by a
barrister or solicitor. 403 Paragraph 254(1)(b)
Omit ", whether the deed was executed under this Act or the repealed Act". 404
Paragraph 254(1)(c)
Omit ", whether the composition or scheme was accepted or approved under this
Act or the repealed Act". 405 Paragraph 254(1)(d)
Omit "Part X of the repealed Act or". 406 Subsection 254(4)
Omit "Minister" (wherever occurring), substitute "Official Receiver". 407
Section 255
Repeal the section, substitute: 255 Record of proceedings or evidence

(1) A transcript or electronic or magnetic recording that purports to be a
record of proceedings under section 77C or 81, or of proceedings before a
court, is to be taken to be a record of that kind, unless the contrary is
proved.

(2) The transcript or recording is admissible as evidence of the matters
described by a person whose words are recorded in the transcript or recording,
unless the Court, or a court in which the transcript is sought to be
introduced, makes an order to the contrary.

(3) The cost of preparing a transcript or recording is an expense of
administration of the estate of the bankrupt or debtor to which the matters
recorded relate. 408 Sections 259 and 260
Repeal the sections. 409 Subsection 262(1)
Omit "a Registrar,". 410 Subsection 263(3) (definition of composition)
Omit "includes a composition under Division 5 of Part IV of the repealed Act
or under Part XI of the repealed Act but". 411 Subsection 263(3) (definition
of deceased person)
Omit "or Part X of the repealed Act". 412 Subsection 263(3) (definition of
deed of arrangement)
Omit "includes a deed of arrangement under Part XII of the repealed Act but".
413 Subsection 263(3) (definition of deed of assignment)
Repeal the definition. 414 Subsection 263(3) (definition of scheme of
arrangement)
Omit "includes a scheme of arrangement under Division 5 of Part IV of the
repealed Act or under Part XI of the repealed Act but". 415 Section 263C
Repeal the section, substitute: 263C False claims about a creditor's
entitlement to vote

(1) A creditor must not give to the trustee a section 64D statement knowing or
reckless that the statement is false or misleading in a material particular.
Penalty: Imprisonment for 6 months.

(2) In this section:
give includes cause to be given.
section 64D statement means a statement that is:

   (a)  described in section 64D, as that section applies of its own force, or
        as it is applied by another provision of this Act; and

   (b)  given to the trustee at or before a meeting called for the purposes of
        Part IV, IX, X or XI.
trustee means:

   (a)  a trustee in a bankruptcy; or

   (b)  a trustee of a composition or scheme of arrangement under Division 6
        of Part IV; or

   (c)  the Official Trustee when the Official Trustee has accepted for
        processing a debt agreement proposal; or

   (d)  a controlling trustee as defined in Part X; or

   (e)  a trustee of a deed of arrangement, a deed of assignment or a
        composition under Part X; or

   (f)  a trustee of an estate being administered under Part XI. 416 Paragraph
        264(a)
Omit "or Deputy Registrar". 417 Paragraph 267(1)(b)
Omit "56(1)", substitute "56B(1)". 418 Paragraph 267(1)(c)
Omit "56(13)(a) or (b)", substitute "56F(1)(a) or (b)". 419 At the end of
subsection 267(1)
Add:
; or (e) is given to the Official Trustee under section 185D with a debt
agreement proposal; or

   (f)  is given to the controlling trustee under section 188A. 420
        Subsections 273(6) and (7)
Repeal the subsections. 421 Part XV
Repeal the Part. 422 After section 302A
Insert: 302B Certain provisions in trust deeds void
A provision of a trust deed is void to the extent that it has the effect of:

   (a)  cancelling, reducing or qualifying a beneficiary's interest under the
        trust; or

   (b)  allowing the trustee to exercise a discretion to the detriment of a
        beneficiary's interest; if the beneficiary becomes a bankrupt, commits
        an act of bankruptcy or executes a deed of assignment or a deed of
        arrangement under this Act. 423 Paragraph 303(a)
Omit "or to the Registrar". Note: The heading to section 303 is altered by
omitting "or Registrar". 424 Subsection 304A(1) (paragraph (f) of the
definition of indexable amount)
Omit "rules", substitute "regulations". 425 Subsection 304A(1) (paragraph (i)
of the definition of indexable amount)
Repeal the paragraph, substitute:

        (i)    the amount of $1,109 referred to in subsection 161B(1); or 426
               Subsection 305(1)
Omit "or Part X of the repealed Act". 427 Subsection 306B(1)
Omit "filed", substitute "given to a person". 428 Subsection 306B(1)
Omit "19AA(2), 150(3), 154A(3) or 189A(1)", substitute "155A(6), 155F(2) or
155I(4) or section 189A". 429 Subsection 309(1)
Repeal the subsection. 430 Subsection 309(1A)
Omit all the words after "sent", substitute "to the trustee at any of those
addresses". 431 Section 310
Repeal the section. 432 Paragraph 311(1)(b)
Omit ", whether the deed was executed under this Act or the repealed Act". 433
Paragraph 311(1)(c)
Omit ", whether the composition or scheme was accepted or approved under this
Act or the repealed Act". 434 Paragraph 311(1)(d)
Omit "Part X of the repealed Act or". 435 Paragraph 311(2)(a)
Omit "or the repealed Act". 436 Section 312
Repeal the section, substitute: 312 Return or destruction of old accounts and
records

(1) During the administration of the estate of a bankrupt or debtor, the
trustee may destroy or give back to the bankrupt or debtor any books that:

   (a)  the bankrupt or debtor gave to any trustee of the estate; and

   (b)  the trustee considers will not help the administration.

(2) After the end of the administration of the estate of a bankrupt or debtor,
the last trustee to administer the estate:

   (a)  may give back to the bankrupt or debtor any books that the bankrupt or
        debtor gave to any trustee of the estate; and

   (b)  may destroy any other books relating to the estate in accordance with
        subsection (3) or (4).

(3) The trustee may destroy books relating to the estate at any time at least
6 years after the end of the administration if, by the end of the
administration:

   (a)  no property had been realised; and

   (b)  no dividends had been distributed to creditors; and

   (c)  the trustee considered that there was no chance of realising any
        property or distributing dividends.

(4) The trustee may destroy books relating to the estate at any time at least
15 years after the end of the administration if, by the end of the
administration:

   (a)  property had been realised; and

   (b)  the trustee had received some remuneration.

(5) A trustee may destroy books only in accordance with this section.

(6) This section does not limit a trustee's power to give back to a bankrupt
or debtor books that the bankrupt or debtor gave to any trustee of the estate
of the bankrupt or debtor.

(7) This section does not limit a trustee's power to require a bankrupt or
debtor to give books to the trustee (even if the books have previously been
given to a trustee of the estate).

(8) In this section: end of the administration means:

   (a)  in the case of a bankruptcy-the day on which the bankrupt is
        discharged or the bankruptcy is annulled, whichever happens first; or

   (b)  in the case of an administration under Part X-the day 3 years after
        the day on which a deed or composition made by the debtor for the
        administration of the debtor's estate took effect; or

   (c)  in the case of an administration under Part XI-the day 3 years after
        the day on which the administration is taken to have commenced under
        section 247A. 437 Subsections 313(1), (2) and (4)
Omit "the Registrars,". 438 Subsection 313(5)
Omit "the Registrar,". Note: The heading to section 313 is altered by omitting
"the Registrars,". 439 Sections 314 and 315
Repeal the sections, substitute: 315 Regulations

(1) The Governor-General may make regulations prescribing matters:

   (a)  required or permitted by this Act to be prescribed; or

   (b)  necessary or convenient to be prescribed for carrying out or giving
        effect to this Act.

(2) In particular, the regulations may:

   (a)  provide for the establishment, maintenance, correction and inspection
        of the National Personal Insolvency Index; and

   (b)  specify matters that must be, or may be, entered in the Index; and

   (c)  provide for the obtaining of extracts of material entered in the
        Index; and

   (d)  provide for the use of extracts of material entered in the Index in
        evidence in proceedings under this Act and other laws of the
        Commonwealth or of a State or Territory; and

   (e)  provide for immunity from actions for defamation arising out of
        publication of material in the Index or publication of extracts of
        material from the Index; and

   (f)  provide for information and documents to be given to persons for entry
        in the Index; and

   (g)  provide for the means of service of documents; and

   (h)  provide for the publication of notice of specified events; and

   (i)  provide for the manner in which committees referred to in Division 1
        of Part VIII are to perform their functions, including:

        (i)    the convening of meetings of committees; and

        (ii)   the number of members of a committee who form a quorum; and

        (iii)  disclosure of interest in a matter before a committee; and

        (iv)   the manner in which questions are to be decided by the
               committee; and

   (j)  provide for the charging and payment of fees in relation to:

        (i)    proceedings under this Act; and

        (ii)   inspection of material entered in the Index; and

        (iii)  obtaining extracts of material entered in the Index; and

        (iv)   inspection and copying of documents given to Official
               Receivers; and

   (k)  prescribe penalties not exceeding 10 penalty units for offences
        against the regulations. 440 Schedule 2
Repeal the Schedule. Part 2-Application and transitional provisions relating
to amendments of the Bankruptcy Act 1966 Division 1-Provisions relating to
particular amending items 441 Items 2 to 5 and 8, 9, 11 and 16 Application

(1) The new definitions inserted or substituted by items 2 to 5 and 8, 9, 11
and 16 apply to all provisions of the Bankruptcy Act 1966 applying to
bankruptcies and other insolvency administrations that are current on or after
the commencement of this Schedule. Transitional-item 11

(2) Despite the substitution of the definition of Registrar by item 11:

   (a)  the Court may still make orders under paragraphs 30(5)(c) and (d) of
        the Bankruptcy Act 1966 in relation to a failure to comply with an
        order, direction or requirement that was given or made by a Registrar
        in Bankruptcy before this Schedule commenced; and

   (b)  the Court may still extend or abridge, under paragraph 33(1)(c) of the
        Bankruptcy Act 1966, a time that was fixed by a Registrar in
        Bankruptcy before this Schedule commenced; and

   (c)  the Court or a magistrate may issue a warrant under subsection 264B(1)
        of the Bankruptcy Act 1966 for the arrest of a person who failed to
        attend before, or appear and report to, the Registrar in Bankruptcy
        before this Schedule commenced. 442 Items 46 and 52
The amendments made by the following items apply in relation to authorities
given under section 188 of the Bankruptcy Act 1966 after this Schedule
commences:

   (a)  item 46;

   (b)  item 52, so far as it substitutes a new paragraph 12(2)(b) of the
        Bankruptcy Act 1966. 443 Items 89 and 90
The amendments made by items 89 and 90 do not apply in relation to proceedings
in bankruptcy that were begun in the Supreme Court of a State or of the
Northern Territory before this Schedule commenced. 444 Item 91
The amendment made by item 91 does not apply in relation to proceedings in
bankruptcy that were begun in the Supreme Court of a State or of the Northern
Territory before this Schedule commenced. 445 Item 101
The amendment made by item 101 does not apply in relation to appeals from any
proceedings continued under item 444 in the Supreme Court of a State or of the
Northern Territory after this Schedule commenced. 446 Items 108 and 109
The amendments made by items 108 and 109 apply in relation to all acts of
bankruptcy committed on or after the commencement of this Schedule. 447 Item
120
The amendment made by item 120:

   (a)  applies to the presentation of creditor's petitions after this
        Schedule commences; and

   (b)  does not prevent the continuation of proceedings begun before this
        Schedule commenced by the presentation of a creditor's petition
        against a debtor who owed the petitioning creditors one or more debts
        totalling at least $1,500 but less than $2,000. 448 Items 144 to 150
The amendments made by items 144 to 150 apply to:

   (a)  debtor's petitions that were presented, but not accepted or rejected,
        before this Schedule commenced; and

   (b)  debtor's petitions that are presented after this Schedule commences.
        449 Item 151
The new sections substituted by item 151 apply to:

   (a)  debtor's petitions that were presented, but not accepted or rejected,
        before this Schedule commenced; and

   (b)  debtor's petitions that are presented after this Schedule commences.
        450 Items 152 to 158
The amendments made by items 152 to 158 apply to:

   (a)  debtor's petitions that were presented, but not accepted or rejected,
        before this Schedule commenced; and

   (b)  debtor's petitions that are presented after this Schedule commences.
        451 Item 161
The amendment made by item 161 applies in relation to a meeting held after
this Schedule commences, except a meeting:

   (a)  notice of which was given before the commencement of this Schedule; or

   (b)  continuing a meeting described in paragraph (a) that was adjourned.
        452 Item 165
The amendment made by item 165 applies in relation to a meeting held after
this Schedule commences, except a meeting:

   (a)  notice of which was given before the commencement of this Schedule; or

   (b)  continuing a meeting described in paragraph (a) that was adjourned.
        453 Item 182
The new subsection substituted by item 182 applies to debts provable in a
bankruptcy that is current on or after the commencement of this Schedule,
regardless of when the maintenance agreement or maintenance order under which
the debt arose was made. 454 Item 193
The amendment made by item 193 applies to bankruptcies for which the date of
the bankruptcy is on or after the commencement of this Schedule. 455 Item 198
The amendment made by item 198 applies to bankruptcies for which the date of
the bankruptcy is on or after the commencement of this Schedule. 456 Items 199
to 202
The amendments made by items 199 to 202 apply in relation to bankruptcies
current on or after the commencement of this Schedule. However, the
amendments:

   (a)  do not affect any distribution of a dividend before this Schedule
        commenced; and

   (b)  do not make a trustee liable for any act or omission of the trustee
        that occurred before this Schedule commenced. 457 Item 208
The new sections inserted by item 208 apply to bankruptcies for which the date
of the bankruptcy is on or after the commencement of this Schedule. 458 Items
209 to 221
The amendments made by items 209 to 221 apply to all bankruptcies that are
current on or after the day on which this Schedule commences, but do not
affect any distributions made before this Schedule commenced. 459 Item 222
The amendment made by item 222 applies in relation to debtors who are bankrupt
when this Schedule commences or who become bankrupt after this Schedule
commences. However, the amendment:

   (a)  does not affect any distribution of a dividend before this Schedule
        commenced; and

   (b)  does not make a trustee liable for any act or omission of the trustee
        that occurred before this Schedule commenced. 460 Items 233 to 241
The amendments made by items 233 to 241 apply to all bankruptcies current on
or after the commencement of this Schedule. 461 Items 242 to 246
The amendments made by items 242 to 246 apply to all bankruptcies current on
or after the commencement of this Schedule. 462 Item 250
The new definition of contribution assessment period substituted by item 250
applies to bankruptcies for which the date of the bankruptcy is on or after
the commencement of this Schedule. 463 Items 252 to 254
The amendments made by items 252 to 254 apply in relation to all bankruptcies
current on or after the commencement of this Schedule. However, the amendments
do not affect any assessment made before this Schedule commenced. 464 Items
256 to 258
The amendments made by items 256 to 258 apply in relation to each bankrupt for
whom the date of the bankruptcy was on or after the commencement of this
Schedule. 465 Item 259
The amendment made by item 259 applies to all bankruptcies current on or after
the commencement of this Schedule. 466 Item 277
The amendment made by item 277 applies to statements given to the Official
Receiver after this Schedule commences. 467 Item 282
Despite the amendment made by item 282, the Court may make an order annulling
a bankruptcy that resulted from the Registrar in Bankruptcy accepting a
debtor's petition. 468 Item 283
The new sections inserted by item 283 apply in relation to:

   (a)  applications made after this Schedule commences; and

   (b)  persons who were registered trustees immediately before this Schedule
        commenced; and

   (c)  persons who become registered as trustees after this Schedule
        commences. 469 Items 293 and 425
The amendments made by items 293 and 425 apply to trustees who consent to act
as trustee after the commencement of this Schedule. 470 Items 303 to 308
The amendments made by items 303 to 308 apply to all bankruptcies current on
or after the commencement of this Schedule. 471 Items 315 and 316
The amendments made by items 315 and 316 apply to a person registered as a
trustee on or after the day on which this Schedule commences. 472 Items 321,
323 and 324
The amendments made by items 321, 323 and 324 apply in relation to authorities
given under section 188 after this Schedule commences. 473 Item 332
The section inserted by item 332 applies in relation to authorities signed by
debtors on or after the day on which this Schedule commences. 474 Item 333
The amendment made by item 333 applies in relation to an authority under
section 188 of the Bankruptcy Act 1966 that is current on or after the day on
which this Schedule commences. 475 Item 334
The new sections inserted by item 334 apply in relation to an authority under
section 188 of the Bankruptcy Act 1966 that is current on or after the day on
which this Schedule commences. 476 Item 344
The new section substituted by item 344 applies in relation to a meeting
called under an authority under section 188 of the Bankruptcy Act 1966 that is
current on or after the day on which this Schedule commences. 477 Items 345
and 346
The amendments made by items 345 and 346 apply in relation to a meeting held
after this Schedule commences, except a meeting:

   (a)  notice of which was given before the commencement of this Schedule; or

   (b)  continuing a meeting described in paragraph (a) that was adjourned.
        478 Item 347
The amendment made by item 347 applies in relation to a meeting held after
this Schedule commences, except a meeting:

   (a)  notice of which was given before the commencement of this Schedule; or

   (b)  continuing a meeting described in paragraph (a) that was adjourned.
        479 Items 348 and 349
The amendments made by items 348 and 349 apply in relation to resolutions and
special resolutions at a meeting held after this Schedule commences, except a
meeting:

   (a)  notice of which was given before the commencement of this Schedule; or

   (b)  continuing a meeting described in paragraph (a) that was adjourned.
        480 Item 356
The new section substituted by item 356 applies in relation to all persons who
are controlling trustees on or after the commencement of this Schedule. 481
Item 360
The amendment made by item 360 applies in relation to resolutions at a meeting
held after this Schedule commences, except a meeting:

   (a)  notice of which was given before the commencement of this Schedule; or

   (b)  continuing a meeting described in paragraph (a) that was adjourned.
        482 Items 368 and 369
The amendments made by items 368 and 369 do not apply in relation to a special
resolution passed at a meeting:

   (a)  called before this Schedule commences; or

   (b)  held after this section commences as a continuation of a meeting
        called before this Schedule commences. 483 Items 373 and 374
The amendments made by items 373 and 374 apply in relation to a meeting held
after this Schedule commences, except a meeting:

   (a)  notice of which was given before the commencement of this Schedule; or

   (b)  continuing a meeting described in paragraph (a) that was adjourned.
        484 Item 375
The amendment made by item 375 applies in relation to a meeting held after
this Schedule commences, except a meeting:

   (a)  notice of which was given before the commencement of this Schedule; or

   (b)  continuing a meeting described in paragraph (a) that was adjourned.
        485 Item 382
Despite the amendment made by item 382, proceedings begun before the
commencement of this Schedule by presentation of a petition to the Court in
relation to one or more debts totalling at least $1,500 but less than $2,000
may continue. 486 Item 402
The new section substituted by item 402 applies in relation to debtor's
petitions that:

   (a)  are presented after this Schedule commences; or

   (b)  were presented, but not dealt with by the Registrar in Bankruptcy,
        before this Schedule commenced. 487 Item 415
The new section substituted by item 415 applies only in relation to section
64D statements given on or after the day this Schedule commences. 488 Item 417
The amendment made by item 417 applies in relation to debtor's petitions that
are presented after this Schedule commences. 489 Item 418
The amendment made by item 418 applies to statements given to the Official
Receiver in relation to debtor's petitions that:

   (a)  are presented after this Schedule commences; or

   (b)  were presented, but not dealt with by the Registrar in Bankruptcy,
        before this Schedule commenced. 490 Item 422
The new section inserted by item 422 applies to trust deeds regardless of when
they were made. 491 Items 427 and 428
Despite the amendments made by items 427 and 428, an action, suit or
proceeding does not lie in respect of a statement made in good faith in a
report referred to in subsection 19AA(2), 150(3), 154A(3) or 189A(1) of the
Bankruptcy Act 1966 as in force before this Schedule commenced. Division
2-General provisions 492 Bankruptcy Districts
An area that was a Bankruptcy District because of a proclamation in force
immediately before the commencement of this Schedule continues to be a
Bankruptcy District as if it had been declared by the Inspector-General by
notice in the Gazette. 493 Orders made by State and Northern Territory Supreme
Courts
The Bankruptcy Act 1966 applies in relation to an order made at any time by
the Supreme Court of a State or of the Northern Territory exercising its
jurisdiction in bankruptcy as if the order had been made by the Federal Court
of Australia. 494 Examinations being conducted by Registrar in Bankruptcy
An examination that was being conducted by a Registrar in Bankruptcy under
section 81 of the Bankruptcy Act 1966 before this Schedule commenced may be
continued by the Registrar, a Deputy Registrar, a District Registrar or a
Deputy District Registrar of the Federal Court after this Schedule commences,
as if he or she had been conducting the examination before this Schedule
commenced. 495 Failure to comply with bankruptcy notice issued by Registrar in
Bankruptcy
Failure to comply with a bankruptcy notice issued by a Registrar in Bankruptcy
before this Schedule commenced is an act of bankruptcy, even if one or both of
the following conditions are met:

   (a)  the time fixed by the Registrar in Bankruptcy ends after the
        commencement of this Schedule;

   (b)  the bankruptcy notice related to a debt of less than $2,000. 496
        Debtor's petition presented to Registrar in Bankruptcy
The Official Receiver must deal with a debtor's petition that was presented to
a Registrar in Bankruptcy before this Schedule commenced, but which the
Registrar had not accepted or rejected. In particular, if the Registrar had
referred the petition to the Court, but had not received or had not acted on
the Court's direction, the Official Receiver must act on the Court's
direction. 497 Registration of trustees Registration of trustees registered
previously

(1) A person who was a registered trustee immediately before this Schedule
commenced is taken to be registered as a trustee under section 155C of the
Bankruptcy Act 1966, without needing to pay a registration fee. No refund of
fees paid previously

(2) A person who was registered as a trustee immediately before this Schedule
commenced is not entitled to the refund of any fees paid in relation to that
registration. Applicants for registration

(3) If, before the commencement of this Schedule:

   (a)  a person had applied:

        (i)    for a report stating the Official Receiver's opinion about the
               applicant; or

        (ii)   to be registered as a trustee; and

   (b)  the Court had not decided whether to direct that the applicant be
        registered or to refuse the application; then:

   (c)  section 154A, and subsections 155(2), (3), (3A), (3B) and (8), of the
        Bankruptcy Act 1966 as in force immediately before the commencement of
        this Schedule apply in relation to the application; and

   (d)  if the Court directs that the applicant be registered, the
        Inspector-General must register the applicant under section 155C of
        the Bankruptcy Act 1966 without payment of the registration fee
        indicated in that section. 498 Debts to which debt agreement proposal
        may relate
A debt agreement proposal can be made under Part IX of the Bankruptcy Act 1966
whether the debts to which the proposal relates were incurred before or after
this Schedule commenced. 499 Remuneration of controlling trustee
A person who was a controlling trustee immediately before the commencement of
this Schedule is to continue to be remunerated under the arrangements existing
immediately before that commencement. 500 Orders under subsection 254(3)
If, before this Schedule commenced, the Minister received an office copy of an
order under subsection 254(3) of the Bankruptcy Act 1966 but had not paid the
amount specified in the order to the person in whose favour the order was
made, the Official Receiver must pay the person.