This bill became law on Nov 22nd, 2023.
Law, justice & rights
People filing bankruptcy papers must now get a decision within 14 days, and if their financial statement is rejected they must be told what is missing and invited to correct it.
AFSAThe government agency that runs Australia’s personal insolvency system and handled the bankruptcy paperwork at the centre of this bill.’s long-standing practice of treating bankruptcy papers as filed only when accepted, sometimes after delays to fix missing information, left the legal filing date out of step with the ordinary meaning and with recorded discharge dates. The bill validates that practice, sets a 14-day decision process, and ties discharge to acceptance while preserving existing recorded dates people had relied on.
For more than 30 years, the Australian Financial Security AuthorityThe government agency that runs Australia’s personal insolvency system and handled the bankruptcy paperwork at the centre of this bill. and its predecessors had treated bankruptcy paperwork as filed only when it was accepted, even though the law’s wording pointed to the earlier hand-in date, creating a mismatch that could affect when people were shown as discharged and unsettle dates already recorded and relied on. The bill was introduced in November 2023 to validate that long-standing practice, require a decision on paperwork within 14 days, and tie future discharge dates to acceptance while preserving existing recorded dates, and it became law on 22 November 2023.
The main criticism was that the bill was rushed through Parliament so quickly that crossbench MPs had little chance to scrutinise the claimed urgency, test the drafting or hear from affected stakeholders. That concern was raised by the Greens and appears to have been a limited procedural objection rather than a broad policy campaign against the bill itself.
Hon Mark Dreyfus KC, MP introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 22 Nov 2023
Final passage
Passed without a counted vote
Members called out ‘aye’ or ‘no’ — no individual votes were recorded.
Passage speed
8 days
From introduction to the latest recorded parliamentary step
Meaning
People filing bankruptcy papers must now get a decision within 14 days, and if their financial statement is rejected they must be told what is missing and invited to correct it.
For new bankruptcies, automatic dischargeThe point when a person is released from bankruptcy without asking a court, which this bill links to acceptance of the paperwork. will generally happen three years and one day after the Official ReceiverThe officer within the bankruptcy system who accepts or rejects statements of affairs and records the dates used for bankruptcy timing. accepts the person’s paperwork, not simply when it was first handed in.
Existing and past bankruptcies keep the discharge dates already recorded on the National Personal Insolvency IndexThe public register that records key bankruptcy dates, including the filing or acceptance date that this bill says should continue to be relied on., so bankrupt people, trustees and others can rely on those dates staying valid.
People affected by old filing-date mistakes can ask a court to treat their bankruptcy start date as earlier than the recorded date, which can protect the discharge timing they reasonably relied on.
If these changes unfairly take property from someone, the CommonwealthThe federal government, which the bill makes responsible for paying compensation if the changes amount to an unfair taking of property. must pay reasonable compensation and the person can ask the Federal CourtThe court that can decide how much compensation is owed if the bill takes property on unfair terms. to decide the amount if needed.
New provisions will be inserted into the Act to require the Official Receiver to either accept, or refuse to accept, a statement of affairs within 14 days of receiving it. The Bill provides that the Official Receiver must accept a statement of affairs, unless the Official Receiver thinks it is inadequate. If the Official Receiver refuses to accept the statement of affairs, it must specify the respects in which it is inadequate and invite the person to file an updated statement of affairs. These new provisions are designed to ensure that decisions are made within a reasonable time and that individuals are supported to provide all required information in their statement of affairs.Bankruptcy Amendment (Discharge from Bankruptcy) explanatory memorandum
Under amended section 149, persons who become bankrupt after commencement will be automatically discharged from bankruptcy three years and one day after either the Official Receiver accepts and endorses their debtor’s petition and statement of affairs, or in the case of involuntarily bankruptcies, the date that an adequate statement of affairs has been filed.Bankruptcy Amendment (Discharge from Bankruptcy) explanatory memorandum
The bill includes amendments to ensure that the bankruptcy period of those who are, or have been, bankrupt is consistent with the dates recorded by the Official Receiver prior to commencement in respect to the bankruptcy. This will validate decisions made before commencement of the bill in reliance on those dates. This will allow bankrupted persons, the trustees of their estates, and other entities who rely on the dates within the National Personal Insolvency Index, to be assured that the discharge dates of existing bankruptcies are not being changed.Minister's second reading speech
(2) Section 33A of the Bankruptcy Act 1966, as in force immediately before commencement, applies in relation to the bankrupt on and after commencement as if subsection (2) of that section, in addition to making an order of a kind mentioned in that subsection, also empowered the Court to determine that the person’s discharge reference date is to be treated as having been a date that is earlier than the date that would otherwise apply.Bankruptcy Amendment (Discharge from Bankruptcy) Act 2023 final Act text
Amendments to the Act will also validate decisions made before commencement of the Bill in reliance on dates recorded in the NPII in relation to the filing of a debtor or bankrupt’s statement of affairs. The Bill includes a provision that the Commonwealth is liable to pay a reasonable amount of compensation to a person if the operation of the amendments would result in an acquisition of property other than on just terms within the meaning of paragraph 51(xxxi) of the Constitution.Bankruptcy Amendment (Discharge from Bankruptcy) explanatory memorandum
Context
For more than 30 years, the Australian Financial Security AuthorityThe government agency that runs Australia’s personal insolvency system and handled the bankruptcy paperwork at the centre of this bill. and its predecessors had treated bankruptcy paperwork as filed only when it was accepted, even though the law’s wording pointed to the earlier hand-in date, creating a mismatch that could affect when people were shown as discharged and unsettle dates already recorded and relied on. The bill was introduced in November 2023 to validate that long-standing practice, require a decision on paperwork within 14 days, and tie future discharge dates to acceptance while preserving existing recorded dates, and it became law on 22 November 2023.
AFSAThe government agency that runs Australia’s personal insolvency system and handled the bankruptcy paperwork at the centre of this bill. used acceptance of paperwork as the practical bankruptcy start date
The Attorney-General said AFSAThe government agency that runs Australia’s personal insolvency system and handled the bankruptcy paperwork at the centre of this bill. and its predecessors had long calculated automatic dischargeThe point when a person is released from bankruptcy without asking a court, which this bill links to acceptance of the paperwork. from when a statement of affairsThe form that lists a bankrupt person’s finances and other details, and which the bill treats as needing a decision within 14 days. was accepted, shaping recorded discharge dates for bankrupt people, trustees and creditors.
Hansard ↗Government says the law needs to match long-standing bankruptcy administration
When introducing the bill, the Attorney-General said it would clarify discharge timing by reflecting AFSAThe government agency that runs Australia’s personal insolvency system and handled the bankruptcy paperwork at the centre of this bill.'s established practice and provide certainty for people already affected by it.
Hansard ↗House passes the bill
The House backed the bill as a technical measure to preserve the status quo for bankruptcy discharge dates and keep existing expectations stable.
Parliamentary timeline ↗Parliament passes the bill
Both Houses passed the bill in the same form, clearing the way for the long-used administrative practice to be validated in law.
Parliamentary timeline ↗Royal AssentThe final step that turns a bill passed by Parliament into an Act of Parliament. makes the changes law
Royal AssentThe final step that turns a bill passed by Parliament into an Act of Parliament. turned the bill into an Act, locking in the clarified discharge rules while preserving discharge dates already recorded on the insolvency index.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading moved
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading debated
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal AssentThe final step that turns a bill passed by Parliament into an Act of Parliament., turning the bill into an Act.
Key criticism
The main criticism was that the bill was rushed through Parliament so quickly that crossbench MPs had little chance to scrutinise the claimed urgency, test the drafting or hear from affected stakeholders. That concern was raised by the Greens and appears to have been a limited procedural objection rather than a broad policy campaign against the bill itself.
Criticism recorded was narrow and focused on parliamentary process, not the bill’s core bankruptcy fix.
Rushed parliamentary scrutiny
The Greens argued the bill was pushed through too fast, leaving the crossbench without enough time to examine whether the urgency was real, test the technical drafting or seek stakeholder input. The concern was that a bill described as technical and non-controversial still deserved proper parliamentary scrutiny before passage.
Further sources
Votes
The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Parliamentary debate
Start here — lead voices
Dreyfus supports the bill and says it should pass because it will confirm the long-standing way bankruptcy discharge dates have been calculated and give certainty to bankrupts, creditors and trustees.
Read in Hansard ↗Bandt says the Greens will not support the bill because Labor rushed it through without giving the crossbench time to scrutinise it or test the claimed urgency.
Read in Hansard ↗Michaelia Cash says the coalition will support the bill because it is a technical measure that preserves the current bankruptcy practice and creates certainty about when bankruptcy starts and ends.
Read in Hansard ↗McCarthy supports the bill, saying it will fix the Bankruptcy Act to match long-standing official practice and give certainty about discharge dates for bankrupt individuals, creditors and trustees.
Read in Hansard ↗All speeches by bloc
3 speakers · 4 contributions · 3 support
“It is essential that there be certainty in the Bankruptcy system. The amendments in the Bill will provide certainty to individuals and industry by affirming a long-standing practice and common understanding of the application of the legislation.”Read the full speech in Hansard ↗
Hansard records 2 separate contributions by Mark Dreyfus, including an amendment-moving contribution. They are grouped here so the speaker is listed once.
Moved amendment
Dreyfus supports the bill and says it should pass because it will confirm the long-standing way bankruptcy discharge dates have been calculated and give certainty to bankrupts, creditors and trustees. He says the changes align the law with current practice and validate past decisions without affecting criminal proceedings.
“The bill will amend the act to enable the Australian Financial Security Authority to continue its practice of assessing bankruptcy applications for adequacy before the period of a person's bankruptcy commences.”Read this contribution in Hansard ↗
Second reading speech
Dreyfus supports the bill, saying it restores legal certainty by validating long-standing bankruptcy discharge calculations and clarifying how the official receiverThe officer within the bankruptcy system who accepts or rejects statements of affairs and records the dates used for bankruptcy timing. accepts statements of affairs. He presents it as a practical fix that protects people who have already dealt with the bankruptcy system over the past 30 years.
“The government is committed to ensuring that there is legal certainty for those who have engaged with the bankruptcy system over this 30-year period. The retrospective application of the bill ensures that past decisions are validated.”Read this contribution in Hansard ↗
“The provisions contained in this bill provide current and future Australian bankrupt persons certainty over their automatic discharge date and allow the Australian Financial Security Authority to continue its practice of assessing bankruptcy applications for adequacy in order to assist with the effective administration of bankrupt estates. The new provisions will require the official receiver to either accept or refuse to accept a statement of affairs within 14 days of receiving it. The time frame will ensure decisions are made within a reasonable and transparent time. The bill will also ensure that the bankruptcy period of those who are or have been affected by this issue is consistent with the dates recorded by the official receiver prior to the commencement in respect of the bankruptcy. These amendments will validate decisions made before the commencement of this bill in reliance of those dates. This is an important bill that provides certainty for those who are currently in or have previously entered the bankruptcy system over the past 30 years and clarifies the process of accepting a statement of affairs. I commend the bill.”Read the full speech in Hansard ↗
2 speakers · 2 support
“I rise to speak on the Bankruptcy Amendment (Discharge from Bankruptcy) Bill 2023, and I advise the chamber that the coalition will be supporting this bill. And as with the other urgent bill that was introduced into the House this week and has just gone through the Senate, we will facilitate its passage.”Read the full speech in Hansard ↗
“I rise to speak on the Bankruptcy Amendment (Discharge from Bankruptcy) Bill 2023. The coalition will be supporting this bill and, like the other urgent bill introduced into the House this week, the Crimes and Other Legislation Amendment (Omnibus No. 2) Bill 2023, we will facilitate its passage through the House.”Read the full speech in Hansard ↗
1 speaker · 1 oppose
“No basis has been provided for it, so we're not in a position to support passage of this bill or the other bill today, and we reserve our position as the Greens in the Senate.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Third reading moved
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
House · Third reading debated
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal AssentThe final step that turns a bill passed by Parliament into an Act of Parliament., turning the bill into an Act.
