Commonwealth Consolidated Acts

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Meaning of income

  (1)   In this Division:

"income" , in relation to a bankrupt, has its ordinary meaning, subject to the following qualifications:

  (a)   the following are income in relation to a bankrupt (whether or not they come within the ordinary meaning of "income"):

  (i)   an annuity or pension paid to the bankrupt from a provident, benefit, superannuation, retirement or approved deposit fund;

  (ia)   an annuity or pension paid to the bankrupt from an RSA;

  (ii)   a payment to the bankrupt in consequence of a termination of any office or employment;

  (iii)   an amount of annuity or pension received by the bankrupt under a policy of life insurance or endowment insurance;

  (iv)   an amount received by the bankrupt as a beneficiary under a trust to the extent that the amount was paid out of income of the trust;

  (v)   the value of a benefit that:

  (A)   is provided in any circumstances by any person (the provider ) to the bankrupt; and

  (B)   is a benefit within the meaning of the Fringe Benefits Tax Assessment Act 1986 as in force at the beginning of 1   July 1992 (other than a benefit that would be an exempt benefit for the purposes of that Act if the provider were the employer of the bankrupt as an employee and the provider had provided the benefit in respect of the employment of the bankrupt);

    being that value as worked out in accordance with the provisions of that Act but subject to any modifications of any provisions of that Act made by the regulations under this Act;

  (vi)   the value of a loan made to the bankrupt by an associated entity of the bankrupt, including:

  (A)   a loan under which the loan money is not paid to the bankrupt, but is paid or applied at the bankrupt's direction; and

  (B)   a loan that is not enforceable at law or in equity;

  (vii)   the amount of any money, or the value of any other consideration, received by a person other than the bankrupt from another person as a result of work done or services performed by the bankrupt, less any expenses (other than expenses of a capital nature) necessarily incurred by the first - mentioned person in connection with the work or services;

  (b)   the following are not income in relation to a bankrupt (even if they come within the ordinary meaning of "income"):

  (i)   an amount paid to the bankrupt:

  (A)   from the Child Support Account established under the Child Support (Registration and Collection) Act 1988 ; or

  (B)   from another source for the maintenance of children of whom the bankrupt has custody; or

  (iv)   a payment to the bankrupt under:

  (A)   a legal aid scheme or service established under a law of the Commonwealth or of a State or Territory; or

  (B)   a legal aid scheme or service approved by the Attorney - General for the purposes of paragraph   2(4)(a) of the Federal Court of Australia Regulations; or

  (C)   any other legal aid scheme or service established to provide assistance to people on low incomes;

  (v)   a payment or amount that the regulations provide is not income of the bankrupt.

"pension" includes a pension within the meaning of the Superannuation Industry (Supervision) Act 1993 .

  (2)   For the purposes of the application of the definition of income in subsection   (1) to Subdivision   HA, a reference in that definition to a bankrupt includes a reference to a person who has been discharged from bankruptcy.

Note:   Subdivision   HA deals with the supervised account regime.

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