Indexed amounts are specific dollar limits in Australian bankruptcy law that are adjusted regularly based on inflation and the cost of living. These adjustments ensure that financial thresholds remain fair and relevant over time.
Please note, these figures are updated in line with changes to the Bankruptcy Act 1966.
Indexed amounts in bankruptcy law—updated as of 20 September 2024
| Part IX Debt Agreement | ||
| Limit, Threshold, or Payment | Amount | Bankruptcy Act & Regulations |
|---|---|---|
| Maximum debts, property, and income Amounts updated 20 March and 20 September |
||
| Debts: You can't propose a debt agreement if your unsecured debts exceed this limit | $143,652.60 | S185C(4)(b) & (5) |
| Property: You can't propose a debt agreement if your divisible property exceeds this limit | $287,305.20 | S185C(4)(c) & (5) |
| Income: You can't propose a debt agreement if your after-tax income for the year is over this limit | $107,739.45 | S185C(4)(d) & (5) |
| Bankruptcy | ||
| Limit, Threshold, or Payment | Amount | Bankruptcy Act & Regulations |
| Income contributions from the bankrupt person Amounts updated 20 March and 20 September |
||
| Base income threshold amount (BITA) | $71,826.30 (after tax) |
S185C(4)(d) & (5) |
| Actual income threshold amount (AITA) - Over this amount, half of any income you get goes towards repaying creditors. The applicable threshold depends on how many dependants you have. | (all amounts after tax) |
S139K |
| 0 dependants | $71,826.30 | |
| 1 dependant | $84,755.03 | |
| 2 dependants | $91,219.40 | |
| 3 dependants | $94,810.72 | |
| 4 dependants | $96,247.24 | |
| More than 4 dependants | $97,683.77 | |
| How much someone can earn and still be a dependant | ||
| A person who resides with you and who depends on you for economic support can earn income up to this limit during the income contribution assessment period and still count as your dependant. | $4,406.00 | S139K and r36 |
| Protected property - assets a bankrupt person can keep Amounts updated each financial year |
||
| Tools: Up to this total value, you can keep property used to earn income by physical exertion (tools of trade) | $4,350.00 | S116(2)(c)(i) and r29 |
| Vehicles: You can keep cars or motorbikes you use mainly for transport worth up to this amount | $9,400.00 | S116(2)(ca) and r30 |
| Amount of credit, etc. you can get without telling the lender about your bankruptcy or debt agreement Amounts updated quarterly |
||
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Above this limit, you must disclose that you're bankrupt or in a debt agreement before you can:
|
$7,046.00 | S269(1)(a), (aa), (ab), (ac), (ad) and S304A(1)(j) |
| Warning: It is a criminal offence if you are bankrupt or subject to a debt agreement to obtain or attempt to obtain credit in certain circumstances. Severe penalties apply to these offences. | ||
| The trustee can lodge an objection if you are bankrupt and engage in misleading conduct relating to amounts that are, or add up to, more than the limit | $7,046.00 | S149D(1)(c) and S304A(1)(g) |
