Document ID: chunk:federal_register_of_legislation:C2004A04637:body:0:p3
Version: federal_register_of_legislation:C2004A04637
Segment Type: other
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Character Range: 6202–9055

Principal Act is amended by omitting the definition of "dependant" in subsection (4) and substituting the following definition:

" 'dependant' has the same meaning as in the Superannuation Industry (Supervision) Act 1993.".

PART 3—AMENDMENT OF THE BANKRUPTCY ACT 1966

Principal Act

  5. In this Part, "Principal Act" means the Bankruptcy Act 19662.

Interpretation

6. Section 5 of the Principal Act is amended by omitting from subsection (1) the definition of "policy for pure endowment".

Property divisible among creditors

  7. Section 116 of the Principal Act is amended:

    (a) by omitting paragraphs (2)(d), (e), (f) and (fa) and substituting the following paragraph:

    "(d) subject to subsection (5):

          (i) policies of life assurance or endowment assurance in respect of the life of the bankrupt or the spouse of the bankrupt;

         (ii) the proceeds of such policies received on or after the date of the bankruptcy;

      (iii) the interest of the bankrupt in:

            (A) a regulated superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993); or

            (B) an approved deposit fund (within the meaning of that Act);

        (iv) a payment to the bankrupt from such a fund received on or after the date of the bankruptcy, if the payment is not a pension within the meaning of the Superannuation Industry (Supervision) Act 1993;";

(b) by adding "or" at the end of paragraph (2A)(a);

(c) by omitting "or" from the end of paragraph (2A)(b);

(d) by omitting paragraph (2A)(c);

  (e) by omitting paragraph (a) of the definition of "exempt money" in subsection (2D) and substituting the following paragraph:

        "(a) an amount to which subsection (1) does not extend because of subparagraph (2)(d)(ii) or (iv);";

(f) by adding at the end the following subsections:

   "(5) The following provisions apply in working out how subsection (1) extends to property covered by paragraph (2)(d):

           (a) if the total value of the property does not exceed the bankrupt's pension RBL (worked out under section 140ZD of the Income Tax Assessment Act 1936) for the year of income in which the date of the bankruptcy occurred—subsection (1) does not extend to any of that property;

           (b) if the total value of the property exceeds that pension RBL—subsection (1) does not extend to so much of that total value as equals that pension RBL.

  "(6) The rules may set out a method for determining how one or more items of property are to be apportioned for the purposes of paragraph (5)(b). For example, if the bankrupt's pension RBL is $800,000 and the bankrupt has 2 items of paragraph (2)(d) property each with a value of $500,000, the rules could provide that subsection (1):

        (a) does not extend to the first item; and

           (b) does not extend to