Payments to the bankruptcy trustee
A bankrupt is required to make regular payments or ‘contributions’ to the bankruptcy trustee for the benefit of creditors where their net income is above a certain threshold.
salary and wages;
salary sacrifice arrangements (including superannuation); and
voluntary employer superannuation contributions in excess of those required under Super Guarantee, industrial award or law;
a superannuation pension or annuity;
value of fringe benefits from employers;
payments made on termination of employment; and
a pension or annuity paid under a policy of life insurance.
Fifty per cent of assessable income in excess of the ‘actual income threshold amount’ must be contributed to the bankruptcy trustee.
This is calculated according to the following formula: assessed income minus the actual income threshold amount divided by two.
The actual income threshold amount is based on the ‘base income threshold amount’ of $41,823.60 (current to September 19, 2009) and increases depending on the bankrupt’s number of dependants (see case study).