Document ID: chunk:federal_register_of_legislation:F2020L01668:body:0:p8
Version: federal_register_of_legislation:F2020L01668
Segment Type: other
Provision Reference: 
Character Range: 19410–22362

be expected to demonstrate the following abilities based on their knowledge and business systems:

       * to discern between financial choices and understand money and debt, including how to budget and plan

       * to recognise and competently inform debtors on life events that affect everyday financial decisions, including events in the general economy

       * to determine what budgeting processes are needed to assist the debtor

       * to determine how they would plan to assist the debtor decide what they can afford to pay. For example does the applicant plan to use supporting systems such as the Australian Bureau of Statistics Household Expenditure Survey or the Household, Income and Labour Dynamics in Australia Survey (conducted on behalf of the Department of Social Services) to assist in determining whether their disclosed expenses are reasonable.

3.28 To properly certify that they have reasonable grounds to believe that the debtor has made full and true disclosure of their claims in the proposal and accompanying explanatory statement and statement of affairs, the type of knowledge which the applicant will be required to demonstrate through the examination process is as follows:

       * An understanding of what enquiries can be easily made both from the debtor and other resources to be able to certify with assurance to the Official Receiver that they have a reasonable basis for believing that the debtor has properly disclosed their affairs. For example an applicant will be expected to explain what evidence they will require from a debtor concerning income, expenses, liabilities and assets.

       * What simple checks can be undertaken and what evidence they might retain in support of these checks.

3.29 During the inspection phase of the assessment, the Inspector-General will examine the systems and controls an administrator has in place in respect to these areas including:

       * their budgetary and assessment processes that will enable identification of the debtor's income and likely expenses during the period of the proposed agreement.

       * processes that will ensure they are able to explain to the debtor what their obligations are and the consequences of failing to meet those obligations.

    3.30 The Inspector-General will examine documented practices and check lists, and, where an applicant is relying on others to assist, how the applicant will properly supervise and train their employees, agents or brokers to properly perform these duties on their behalf.

    (b) Duty to respond in a timely manner to reasonable requests from debtors and creditors

3.31 An applicant will need to demonstrate knowledge of the obligations of an administrator to respond in a timely manner to reasonable requests from creditors about the progress of individual agreements; and to respond in a timely manner to reasonable requests from debtors for information.

3.32 Depending on