Bankruptcy Act 1966

The maximum default amount for a trustee is an amount (exclusive of GST) worked out as follows:

if the trustee is appointed as the trustee of the regulated debtor’s estate during the financial year beginning on 1 July 2016—$5,000;

if the trustee is appointed as the trustee of the regulated debtor’s estate during a financial year beginning on or after 1 July 2017—the greater of:

the amount worked out by multiplying the indexation factor for the financial year (worked out under subsections (3) and (4)) by the maximum default amount for a trustee appointed as the trustee of a regulated debtor’s estate during the previous financial year; and

the amount (if any) prescribed for the purposes of this subparagraph.

Amounts worked out under subsection (1) must be rounded to the nearest whole dollar (rounding 50 cents upwards).

Subject to subsection (4), the indexation factor for a financial year is the number worked out by dividing the index number for the March quarter immediately preceding that financial year by the index number for the March quarter immediately preceding that first‑mentioned March quarter.

If an indexation factor worked out under subsection (3) would be less than 1, the indexation factor is to be increased to 1.

In working out the indexation factor:

use only the index numbers published in terms of the most recently published index reference period for the Consumer Price Index; and

disregard index numbers published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the index reference period).

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