Income & Contributions
For most people who go bankrupt will not pay any contributions towards their debts.
Bankruptcy is designed to protect your income to ensure you can still meet your essential needs.
How much income you can keep depends on how many dependants you have.
The amount of income you can keep each year, in after-tax dollars is:
Bankruptcy is designed to protect your income to ensure you can still meet your essential needs.
How much income you can keep depends on how many dependants you have.
The amount of income you can keep each year, in after-tax dollars is:
Dependants |
Weekly after tax theshold |
Yearly after tax |
O |
$ 1,112.82 |
$57,866.90 |
1 |
$ 1,313.13 |
$68,282.94 |
2 |
$ 1,413.28 |
$73,490.96 |
3 |
$ 1,468.92 |
$76,384.31 |
4 |
$ 1,491.18 |
$77,541.65 |
Over 4 |
$ 1,513.44 |
$78,698.98 |
Example: Currently you can earn up to $1,112.82 after tax per week for a person with no dependants.
Any amount above that $1,112.82, you will be paying $ 0.50 per dollar you earn.
For example: if you earned $1,200.00 per week after tax. Your contribution will be $ 43.59 per week for 3 years.
Total of $ 6,800.04
Any amount above that $1,112.82, you will be paying $ 0.50 per dollar you earn.
For example: if you earned $1,200.00 per week after tax. Your contribution will be $ 43.59 per week for 3 years.
Total of $ 6,800.04
A dependant is someone who lives with you, who does not earn more than $3,642.00 per year before tax (no tax payable at this level of income).
A husband and wife can each claim all their children as dependants. A separated couple can each claim their children as dependants if they have joint custody and they each have a bedroom allocated for the child.
If you need to go bankrupt and you are worried about income call us and we will explain how it will affect you. We will calculate your actually income for you.
A husband and wife can each claim all their children as dependants. A separated couple can each claim their children as dependants if they have joint custody and they each have a bedroom allocated for the child.
If you need to go bankrupt and you are worried about income call us and we will explain how it will affect you. We will calculate your actually income for you.
Exclusions to income
- Child support and maintenance amounts, if they are received pursuant to the Child Support Agency.
- A payment or amount of Family Tax Benefit paid under family assistance law.
- Rent subsidies paid by the Commonwealth or a State or Territory, other than to an employee.
- The pay and allowances paid to members of the Naval Reserve, Army Reserve or the Air Force Reserve other than in respect of full-time continuous service.
- Payments for jury service or witness expenses.
- Any compulsory superannuation payments made by an employer.
- An amount paid under the National Disability Insurance Scheme in respect of reasonable and necessary supports, as well as any returns earned, derived or received on these amounts.