June 1, 2014

Proposed ASFA changes for insolvency fees

The Australian Government stated in the Mid Year Economic and Fiscal Outlook that personal insolvency fees will be increased to fully recover the costs of administering personal insolvencies.
As part of these changes, two new fees have been proposed:

  • A fee of $120 for the lodgement of a debtor’s petition (under s 55, s 56B and s 57 of the Bankruptcy Act 1966)
  • A fee of $150 for the lodgement of requests by undischarged bankrupts whose bankruptcy is being administered by the Official Trustee, for permission to travel overseas (pursuant to s 272(c)).

It is also proposed that the realisations charge be increased from 4.7% to 6%.
The proposed commencement dates for these changes are:

  • Lodgement of a debtor’s petition fee – 1 April 2014
  • Lodgement of a request to travel overseas fee – 1 April 2014
  • Increase in the realisations charge – 1 July 2014
  • It’s expected that from 1 April 2014, Debtor’s petitions and requests for overseas travel from bankrupts whose bankruptcy is administered from the Official Trustee, will not be processed without payment of the relevant fee.

For more information and advice about insolvency, please contact one of our expert advisors on 1800 246 801.

Information for this article has been referenced from the AFSA website.

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