Thresholds

What income is assessed for contributions?

A bankrupt’s income is assessed to determine whether contributions must be paid. Section 139L of the Bankruptcy Act sets out the definition of income to be assessed.

Income Thresholds before Income Contributions become Payable (after tax & section 139N deductions):

  • $71,826.30 – No Dependants

  • $84,755.03 – 1 Dependant

  • $91,219.40 – 2 Dependants

  • $94,810.72 – 3 Dependants

  • $96,247.24 – 4 Dependants

  • $97,683.77 – 5+ Dependants

  • Maximum Dependant Income – $4,406.00

There are a range of “threshold amounts” and dependants criteria that the government department, Australian Financial Security Authority (AFSA) sets twice a year (March & September).

The maximum dependant income amount is updated each financial year.

However, verify current amounts via the Australian Financial Security Authority (AFSA)'s webpage here.

Last updated: 20 September 2024.

Disclaimer

The enclosed information is of necessity a brief overview and it is not intended that readers should rely wholly on the information contained herein. No warranty express or implied is given in respect of the information provided and accordingly no responsibility is taken by Worrells or any member of the firm for any loss resulting from any error or omission contained within this fact sheet.

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