Budget Review 2009-10: Legal issues and the Attorney-General's portfolio-Insolvency and Trustee Service Australia

Budget Review 2009-10 Index

Budget 2009–10: Legal issues and the Attorney-General's portfolio

Insolvency and Trustee Service Australia

Morag Donaldson

Insolvency and Trustee Service Australia (ITSA) is responsible for the administration and regulation of the personal insolvency system in Australia. Its purpose is to ‘provide a personal insolvency system that produces equitable outcomes for debtors and creditors, enjoys public confidence and minimises the impact of financial failure on the community’.[1] Among other activities, ITSA maintains the bankruptcy registry, regulates bankruptcy trustees, exercises Official Trustee powers (including the administration of proceeds of crime property), oversees insolvencies and debt agreements, and investigates offences under the Bankruptcy Act 1966. Its workload has increased about seven per cent on average over the past 20 years, but recently its workload has increased ‘well in excess’ of this figure, largely due to an increased number of bankruptcies, insolvency and debt agreements attributed to the impact of the global financial crisis.[2]

ITSA will receive increased funding of $14.3 million over two years to enable it to deal with its increased level of work. This brings its total available annual appropriation to an estimated $45.211 million for 2009–10.[3] Further, ITSA operates under cost recovery arrangements on a fee or charge for service basis. Such fees and charges (last reviewed in June 2008) are expected to amount to $2.2 million in 2009–10, and are returned to the Consolidated Revenue Fund.[4]

[1]. Insolvency and Trustee Service Australia (ITSA), Welcome to ITSA, viewed 14 May 2009, http://www.itsa.gov.au/

[2]. Australian Government, Portfolio budget statements 2009–10: budget related paper no. 1.2: Attorney-General’s Portfolio, p. 379

[3]. Australian Government, Portfolio budget statements 2009–10: budget related paper no. 1.2: Attorney-General’s Portfolio, p. 380.

[4]. Australian Government, Portfolio budget statements 2009–10: budget related paper no. 1.2: Attorney-General’s Portfolio, p. 384.

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