Bankruptcy Act 1966

This section applies if:

the trustee of a regulated debtor’s estate:

is subject to a requirement under subsection 65‑5(1) (paying money into administration account); and

fails to comply with the requirement in relation to an amount of money; and

the amount exceeds:

$50; or

if another amount is prescribed—that other amount.

Subsection (1) does not apply if, on the application of the trustee of the regulated debtor’s estate, the Court is satisfied that the trustee had sufficient reason for failing to comply with the requirement in relation to the amount.

The trustee must, as a penalty, pay interest to the Commonwealth on the excess, worked out:

at the rate of 20% per year; or

if another rate is prescribed—at that other rate;

The trustee is personally liable for, and is not entitled to be reimbursed by the estate in relation to, the payment of that interest.