Bankruptcy Regulations 2021

For the purposes of subparagraph (b)(v) of the definition of income in subsection 139L(1) of the Act, the following contributions and payments made for the purpose of providing superannuation benefits for a bankrupt person are not income of the person:

contributions made by, or on behalf of, each employer of the person to the extent that the contributions reduce the employer’s potential liability for the superannuation guarantee charge imposed under section 5 of the Superannuation Guarantee Charge Act 1992;

contributions made by, or on behalf of, each employer of the person in accordance with the employer’s obligation to make contributions for the person under:

an industrial award or determination made under a law of the Commonwealth, a State or a Territory; or

an industrial agreement registered, made or lodged under a law of the Commonwealth, a State or a Territory; or

a law of the Commonwealth, or of a State or Territory;

payments of shortfall components made to, or for the benefit of, the person under sections 65 to 67 of the Superannuation Guarantee (Administration) Act 1992.

Despite subsection (1), contributions for a contribution assessment period are taken to be income of a person if:

the contributions exceed the charge percentage of the employee’s qualifying earnings for the contribution assessment period; and

the employer has an obligation to make the contributions that arise under an individual industrial agreement; and

the contributions are not contributions of the kind mentioned in subparagraph (1)(b)(iii).

In this section:

an AWA, or an ITEA, (both within the meaning of the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009) to which that Act applies;

a similar agreement under the law of a State or Territory.