Value of residual fringe benefits
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.
19 Section 51
Repeal the section.
20 Divisions 14, 14A and 14B of Part III
Repeal the Divisions.
21 Subsection 136(1)
Insert:
contribution assessment period has the meaning given by section 139K of the Bankruptcy Act 1966 as in force from time to time.
22 Subsection 136(1) (definition of family member)
Repeal the definition, substitute:
family member, in relation to:
a benefit provided to an employee, or to an associate of an employee, means:
the employee; or
the spouse of the employee; or
a child of the employee; and
a benefit provided to a bankrupt, or to an associate of a bankrupt, means:
the bankrupt; or
the spouse of the bankrupt; or
a child of the bankrupt;’.
23 Subsection 136(1) (definition of fringe benefit)
Repeal 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 benefit provided to the bankrupt by the bankrupt’s spouse under, or because of a genuine maintenance agreement between the spouses; or
a benefit provided under a maintenance order, within the meaning of the Bankruptcy Act 1966 as in force from time to time; or
the benefit of an order by a court in favour of the bankrupt in respect of costs of litigation; or
educational expenses paid by any person in respect of a child of:
the bankrupt; or
the bankrupt’s spouse; or
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
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
support by way of one or both of the following:
lodging (including any board);
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:
a close relative; or
a brother or sister (including a half‑brother, half‑ sister, adoptive brother or adoptive sister);
of the bankrupt.
Close relative, in relation to a person, is defined in section 136 of the Fringe Benefits Tax Assessment Act 1986 as:
the spouse of the person; or
a child or parent of the person; or
a parent of the person’s spouse.
24 After subsection 136(1)
Insert:
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.
Schedule 3—Modifications in relation to Part X of the Act
Part 1—Modifications of Part X of the Act—joint debtors
See section 58.
Bankruptcy Act 1966
1 Section 187A
Omit “This Part”, substitute “(1) This Part”.
2 At the end of section 187A
Add:
In the application of this Part (other than subsection 187(1A)) to joint debtors, whether partners or not, an expression specified in one of the following rules of interpretation applies to the extent that the context reasonably permits:
“a debtor” is to be read as “joint debtors”;
“the debtor” is to be read as “the joint debtors”;
“the debtor’s” is to be read as “the joint debtors”;
if used in relation to a debtor:
“he or she” is to be read as “they”; and
“his or her” is to be read as “their”; and
“him or her” is to be read as “them”; and
a noun or verb in the singular form is to be read as being in the plural form.
Subsection (2) applies, subject to any specific modifications of this Part by the Bankruptcy Regulations 2021.
To the extent that the context reasonably permits, a reference (by operation of subsection (2)) to joint debtors includes a reference to any of the joint debtors.
A reference to the affairs, or examinable affairs, of a debtor includes a reference to the separate affairs, or separate examinable affairs, of a joint debtor.
3 Subsection 188(1)
Omit “A debtor”, substitute “If each joint debtor is a person”.
4 Subsection 188(1)
Before “may sign”, insert “the joint debtors”.
5 Subsections 188(2AA) and (2AB)
Omit “the debtor”, substitute “each joint debtor”.
6 Subsections 188(2C) and (2D)
Omit “the debtor” (second occurring), substitute “each joint debtor”.
7 Subsection 188(4)
Before “debtor”, insert “joint”.
8 Paragraph 188A(2)(a)
Omit “the debtor’s property (whether or not already owned by the debtor when he or she executes the agreement)”, substitute “each joint debtor’s property (whether or not already owned by that joint debtor when the joint debtors execute the agreement)”.
9 Paragraph 188A(2)(c)
Omit “the debtor’s income (whether or not already derived by the debtor when he or she executes the agreement)”, substitute “each joint debtor’s income (whether or not already derived by that joint debtor when the joint debtors execute the agreement)”.
10 Paragraphs 188A(2)(e) and (l)
Omit “the debtor”, substitute “each joint debtor”.
11 Subsection 189AB(1)
Omit “When the debtor’s property becomes subject to control under this Division, the debtor’s property is charged with”, substitute “When the property of joint debtors becomes charged under this Division, the charges specified in subsection (1A) are created with respect to”.
12 After subsection 189AB(1)
Insert:
The charges are:
a charge over the joint property of the joint debtors; and
a separate charge over the separate property of each joint debtor.
13 Subsection 189AB(2)
Omit “the charge is not affected”, substitute “none of the charges is affected”.
14 Subsections 189AB(3) and (4)
Omit “The charge”, substitute “Each charge”.
15 Paragraph 189A(1)(a)
Repeal the paragraph, substitute:
summarising and commenting on the information about:
the joint estates of the joint debtors; and
the separate estate of each joint debtor;
that is available to the controlling trustee; and
16 Subsection 219(2)
Repeal the subsection, substitute:
For the purposes of subsection (1), the prescribed official name is “The Trustee (or Trustees) of the Property of (names of debtors), joint debtors”.
Part 2—Modifications of Part VIII of the Act—controlling trustees and trustees of personal insolvency agreements
See section 63.
Bankruptcy Act 1966
17 Before Division 1 of Part VIII
Insert:
This Act’s bill:Explanatory statement
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