Document ID: chunk:federal_register_of_legislation:C2025C00185:section:556:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 556 (pt 1/6)
Character Range: 1875343–1878193

556  Priority payments
 (1) Subject to this Division, in the winding up of a company the following debts and claims must be paid in priority to all other unsecured debts and claims:
 (a) first, expenses (except deferred expenses) properly incurred by a relevant authority in preserving, realising or getting in property of the company, or in carrying on the company's business;
 (b) if the Court ordered the winding up—next, the costs in respect of the application for the order (including the applicant's taxed costs payable under section 466);
 (ba) if:
 (i) during the period of 12 months ending when the winding up commenced, an application (the first application) was made under section 459P for the company to be wound up in insolvency; and
 (ii) when the first application was made, the company was not under administration or restructuring; and
 (iii) the company began to be under administration or restructuring at a time after the first application was made; and
 (iv) the first application was not withdrawn or dismissed before the administration or restructuring began; and
 (v) the Court did not, in response to the first application, make an order under section 459A that the company be wound up in insolvency;
  next, the costs in respect of the first application;
 (c) next:
 (i) the debts for which paragraph 443D(a) or (aa) entitles an administrator of the company to be indemnified (even if the administration ended before the relevant date), except expenses covered by paragraph (a) of this subsection and deferred expenses; and
 (ii) the debts for which paragraph 456J(a) or (b) entitles a restructuring practitioner for the company to be indemnified (even if the restructuring ended before the relevant date), except expenses covered by paragraph (a) of this subsection and deferred expenses;
 (da) if the Court ordered the winding up—next, costs and expenses that are payable under subsection 475(8) out of the company's property;
 (daa) if the company resolved by special resolution that it be wound up voluntarily—next, costs and expenses that are payable under subsection 446C(8) out of the company's property;
 (db) next, costs that form part of the expenses of the winding up because of subsection 539(6), or subsection 70‑15(5) (audit of administration books by ASIC) or section 90‑27 (review by another registered liquidator) of Schedule 2;
 (dd) next, any other expenses (except deferred expenses) properly incurred by a relevant authority;
 (de) next, the deferred expenses;
 (df) if a committee of inspection has been appointed for the purposes of the winding up—next, expenses incurred by a person as a member of the committee;
 (e) subject to subsection (1A)—next:
 (i) wages, superannuation contributions and superannuation guarantee charge payable by the company in respect of services rendered to the company by