Form 1—Bankruptcy noticeForm 1—Bankruptcy notice

## Form 1—Bankruptcy notice    Schedule 3—Paragraph 109(1)(a) of the Act—order of payment of first priority debts (regulation 6.01) 1. Realisations charges payable under the Bankruptcy (Estate Charges) Act 1997 1A. If the Official Trustee transfers the administration of the bankruptcy to a registered trustee: (a) the remuneration set out in Division 3.2 of the Fees and Remuneration Determination that is payable to the Official Trustee; and (b) the reimbursement set out in regulation 16.08 that is payable to the Official Trustee. 2. Expenses reasonably incurred by or on behalf of the trustee: (a) in protecting all or part of the bankrupt’s assets; or (b) in carrying on, in accordance with the Act, a business of the bankrupt; or (c) by way of an advance made to the trustee of the bankrupt’s estate for payment of properly incurred expenses of the estate for any proper purpose (other than remuneration of the trustee) 3. Other fees, costs, charges and expenses payable by the trustee in administering the bankrupt’s estate 4. Where: (a) a creditor has deposited an amount in accordance with an order made under section 50 of the Act; and (b) the amount, or part of the amount, has been used for meeting the expenses referred to in that regulation; the amount, or part of the amount, that has been so used 5. The taxed costs of the petitioning creditor, the administrator of the estate of a deceased person or the applicant under Part X of the Act for a sequestration order and, if a petitioning creditor under Part X of the Act also applied for an order under Division 5 or 6 of Part IX of the Act, any taxed costs of the creditor in respect of the application\* 6. The trustee’s lawful remuneration 7. Where the creditors, or a majority of them, have approved payment of out‑of‑pocket expenses incurred by a member of the committee of inspection—those expenses, to the extent that the trustee of the bankrupt’s estate allows them as being fair and reasonable 8. Costs of any audit carried out under section 70‑15 of Schedule 2 to the Act > Note: \*Note: For the extended application of item 5, see subregulation 6.01(2). Schedule 4—Modifications of the Fringe Benefits Tax Assessment Act 1986 (regulation 6.12) 1 Section 7 (Car benefits) 1.1 Subsections 7(1), (2), (3) and (4): Omit the subsections, substitute: ‘(1) Where, at any time on a day, a person: (a) applies a car held by the person; or (b) makes a car held by the person available; for the private use of a bankrupt, the car is taken, for the purposes of this Act, to constitute a benefit provided on that day by the first‑mentioned person to the bankrupt.’. 2 Section 8 (Exempt car benefits) 2.1 Subsections 8(1) and (2): Omit the subsections. 3 Section 9 (Taxable value of car fringe benefits—statutory formula) 3.1 Subparagraphs 9(2)(c)(i) and (ii): Omit the subparagraphs, substitute: ‘(i) for the first contribution assessment period: (A) where the annualised number of whole kilometres travelled by the car during the year preceding the bankruptcy was more than 40,000—0.07; or (B) where the annualised number of whole kilometres travelled by the car during the year preceding the bankruptcy was not more than 40,000 and not less than 25,000—0.11; or (C) where the annualised number of whole kilometres travelled by the car during the year preceding the bankruptcy was less than 25,000 and not less than 15,000—0.20; or (D) where the annualised number of whole kilometres travelled by the car during the year preceding the bankruptcy was less than 15,000—0.26; and (ii) for each subsequent contribution assessment period: (A) where the annualised number of whole kilometres travelled by the car during the previous contribution assessment period was more than 40,000—0.07; or (B) where the annualised number of whole kilometres travelled by the car during the previous contribution assessment period was not more than 40,000 and not less than 25,000—0.11; or (C) where the annualised number of whole kilometres travelled by the car during the previous contribution assessment period was less than 25,000 and not less than 15,000—0.20; or (D) where the annualised number of whole kilometres travelled by the car during the previous contribution assessment period was less than 15,000—0.26;’. 3.2 Paragraph 9(2)(d): Omit the paragraph, substitute: ‘(d) the annualised number of whole kilometres travelled by the car during a contribution assessment period is: (i) if records of the bankrupt show the number of kilometres travelled by the car during the year preceding that period—that number of kilometres; or (ii) in any other case—the number of kilometres worked out in accordance with the following formula: ; where: A is the number of whole kilometres travelled by the car during the period (in this subsection referred to as the ‘holding period’) constituting that part of the contribution assessment period during which the provider held the car; and B is the number of days in the contribution assessment period; and C is the number of days in the holding period; and’. 3.3 Sub‑subparagraph 9(2)(e)(ia)(B): Omit the sub‑subparagraph. 3.4 Subsection 9(2): Add at the end: > Note: ‘Examples: > Note: 1. Assessment in the first contribution assessment period > Note: A car is purchased in June 1994 for Christopher’s use. The purchase price of the car is $20,000. During the period up to till 30 June 1995, Christopher uses the car on 200 days and travels 10,000 kilometres in that period. Christopher is declared bankrupt on 1 July 1992. His contribution to expenses is $300. > Note: The annualised number of kilometres according to the formula  is  > Note: The figures to be inserted in the formula for calculating the value of the car benefit are: > Note: A (base value): $20,000; > Note: B (statutory fraction \[for 18,250 km.\]): 0.20; > Note: C (days when benefit provided): 365; > Note: D (days in contribution assessment period): 365; > Note: E (bankrupt’s contribution): $300. > Note: The value of the car benefit, according to the formula  is:  > Note: 2. Assessment in the second contribution assessment period > Note: Suppose that the same car is provided in the second contribution assessment period for the use of the bankrupt, and that during the first contribution assessment period the car travelled 40,000 kilometres. The annualised number of kilometres for the second contribution assessment period is then 40,000 kilometres. Suppose also that the bankrupt’s contribution remains $300. All figures will remain the same except the statutory fraction, which will be 0.11. According to the formula, the value of the benefit in the second contribution assessment period is: ’. 4 Section 10 (Taxable value of car fringe benefits—cost basis) 4.1 Omit the section. 5 Section 10A (No reduction of operating cost in a log book year of tax unless log book records and odometer records are maintained) 5.1 Omit the section. 6 Section 10B (no reduction of operating cost in a non‑log book year of tax unless log book records and odometer records are maintained in log book year of tax) 6.1 Omit the section. 7 Section 10C (Nominated business percentage to be reduced if it exceeds business percentage established during applicable log book period or if it is unreasonable) 7.1 Omit the section. 8 Section 11 (Calculation of depreciation and interest) 8.1 Omit the section. 9 Section 12 (Depreciated value) 9.1 Omit the section. 10 Section 13 (Expenditure to be increased in certain circumstances) 10.1 Subsection 13(1): Omit all the words after ‘section 9’. 11 Section 22A (Taxable value of in‑house expense payment fringe benefits) 11.1 Omit the section. 12 Section 23 (Taxable value of external expenses payment fringe benefits) 12.1 Omit ‘external’. 13 Section 26 (Taxable value of non‑remote housing fringe benefits) 13.1 Omit the section, substitute: ‘26 Taxable value of housing fringe benefits Subject to this Part, the value of a housing fringe benefit in relation to a contribution assessment period is the portion of the market value of the recipient’s current housing right that exceeds the recipient’s rent’. 14 Section 28 (Indexation factor for valuation purposes—non‑remote housing) 14.1 Omit the section. 15 Section 29 (Taxable value of remote area accommodation) 15.1 Omit the section. 16 Section 29A (Indexation factor for valuation purposes—remote area accommodation) 16.1 Omit the section. 17 Section 31 (Taxable value of living‑away‑from‑home allowance fringe benefits) 17.1 Add at the end: ‘(2) For the purposes of this section, ‘deducted home consumption expenditure’ referred to in the definition of exempt food component in section 136 to be taken to be: (a) in relation to a person of the age of 12 years or over—$42; and (b) in relation to a person under the age of 12 years—$21. > Note: Example: Calculation of the value of a living‑away‑from‑home allowance. > Note: Assume that a bankrupt living away from his or her family is given a living‑away‑from‑home allowance of $220 a week. Of this amount, $100 represents reasonable compensation for the costs of accommodation (i.e. the ‘exempt accommodation component’ is $100), and $80 represents reasonable compensation for the cost of food. > Note: The remaining $40 is compensation for the disadvantage of living away from home in a town where facilities that would be available at home are not available. > Note: Under subsection 31(2), the exempt food component is $80 minus $42 (i.e. the compensation for increased food cost less the deducted home consumption expenditure). The value of the benefit is: ’. 18 Section 32: (Airline transport benefits) 18.1 Sub‑subparagraph 32(b)(ii)(B): Omit ‘and’. 18.2 Paragraph 32(c): Omit the paragraph. 19 Section 36 (Taxable value of board fringe benefits) 19.1 Omit the section, substitute: ‘36 Taxable value of board fringe benefits Subject to this Part, the value of a board fringe benefit is: (a) in relation to a contribution assessment period beginning: (i) on 1 July 1992; or (ii) during the year beginning on 1 July 1992; $1; and (b) in relation to a later contribution assessment period—a sum worked out according to the formula:  where: CPI is the increase in the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities published by the Australian Statistician in respect of the period that commences on 1 July 1992 and ends immediately before the start of the financial year in which the contribution assessment period commences.’. 20 Section 37 (Reduction of taxable value—‘otherwise deductible’ rule) 20.1 Omit the section. 21 Division 11 of Part III (Property fringe benefits) 21.1 Omit the Division. 22 Section 46 (Year of tax in which residual benefits taxed) 22.1 Omit the section, substitute: ‘46 Contribution assessment period in which residual fringe benefits are to be assessed A residual benefit that is provided during a period which extends over two or more contribution assessment periods is subject to assessment for income contribution in each of those periods.’. 23 Section 48 (Taxable value of in‑house non‑period residual fringe benefits) 23.1 Omit the section. 24 Section 49 (Taxable value of in‑house period residual fringe benefits) 24.1 Omit the section. 25 Section 50 (Taxable value of external non‑period residual fringe benefits) 25.1 Omit the section, substitute: ‘50 Value of residual fringe benefits Subject to this Part, the value of a residual fringe benefit in relation to a contribution assessment period is the cost to the provider of providing the benefit, reduced by the amount of the recipient’s contribution.’. 26 Section 51 (Taxable value of external period residual fringe benefits) 26.1 Omit the section. 27 Division 14 of Part III (Reduction of taxable value of miscellaneous fringe benefits) 27.1 Omit the Division. 28 Division 14A of Part III (Amortisation of taxable value of fringe benefits relating to remote area home ownership schemes) 28.1 Omit the Division. 29 Division 14B of Part III (Reducible fringe benefits relating to remote area home ownership repurchase schemes) 29.1 Omit the Division. 30 Section 136 (Interpretation) 30.1 Subsection 136(1): Insert the following definition: > ‘contribution assessment period has the meaning given by section 139K of the Bankruptcy Act 1966 as in force from time to time.’. 30.2 Subsection 136(1) (definition of family member): Omit the definition, substitute: > ‘family member, in relation to: (a) a benefit provided to an employee, or to an associate of an employee, means: (i) the employee; or (ii) the spouse of the employee; or (iii) a child of the employee; and (b) a benefit provided to a bankrupt, or to an associate of a bankrupt, means: (i) the bankrupt; or (ii) the spouse of the bankrupt; or (iii) a child of the bankrupt;’. 30.3 Subsection 136(1) (definition of fringe benefit): Omit the definition, substitute: > ‘fringe benefit, in relation to a bankrupt, in relation to a contribution assessment period, means a benefit provided at any time during the period by any person to the bankrupt, other than: (a) a benefit provided to the bankrupt by his or her spouse under, or because of a genuine maintenance agreement between the spouses; or (b) a benefit provided under a maintenance order, within the meaning of the Bankruptcy Act 1966 as in force from time to time; or (c) the benefit of an order by a court in favour of the bankrupt in respect of costs of litigation; or (d) educational expenses paid by any person in respect of a child of: (i) the bankrupt; or (ii) the bankrupt’s spouse; or (e) the amount of a refund, or part of a refund, due by the Commissioner to the bankrupt under a law of the Commonwealth, being an amount that the Commissioner has lawfully offset against a tax liability, within the meaning of the Taxation Administration Act 1953 as in force from time to time, of the bankrupt; or (f) subject to subsection (1A), a benefit of a kind referred to in paragraphs (f) to (p) (inclusive) of the definition of fringe benefit in this Act (in its unmodified form) as in force at the beginning of 1 July 1992; or (g) support by way of one or both of the following: (i) lodging (including any board); or (ii) occasional use of a motor vehicle used for domestic purposes; up to a value of $250 a week, if the support is provided by a person in the person’s principal place of residence, and the person is: (iii) a close relative; or (iv) a brother or sister (including a half‑brother, half‑ sister, adoptive brother or adoptive sister); of the bankrupt. > Note: Close relative, in relation to a person, is defined in section 136 of the Fringe Benefits Tax Assessment Act 1986 as: (a) the spouse of the person; or (b) a child or parent of the person; or (c) a parent of the person’s spouse.’. 30.4 After subsection 136(1), insert: ‘(1A) For the purposes of paragraph (f) of the definition of fringe benefit in subsection (1), paragraph (h) of the paragraphs referred to in that paragraph has effect as if ‘the employee, or by a relative of the employee,’ were omitted and ‘the bankrupt’ substituted.’.