It is a positive sign that the administration of the Bankruptcy Act has moved from Attorney-General’s to Treasury, sitting with ASIC and corporate insolvency, the ATO, ASBFEO and others – although under what Minister and in what part of Treasury is not yet explained.
Apart from the Treasurer, we have the Minister for Housing, Minister for Homelessness, the Minister for Cities, the Minister for Small Business, the Minister for International Development, the Minister for Multicultural Affairs, the Assistant Treasurer and the Minister for Financial Services and the Assistant Minister for Productivity, Competition, Charities and Treasury.
Where bankruptcy will sit within Treasury’s wide organisational structure will also be of interest.
Bankruptcy still seems to be a bit of a puzzle to many, even parliamentarians, and insolvency practitioners. As I reported back in 2020 in Where’s personal insolvency nowadays? Australian parliamentary confusion – Murrays Legal during Senate Estimates, the transcript relays a Minister saying:
“Corporate insolvency is the Treasury’s responsibility. With personal insolvency, I can’t find it listed under the Attorney-General’s Department; nor is it listed under the Treasury. We will need to clarify that. …”.
Which might explain a few things.
While silos can exist between departments, they can also occur within departments. They can and do exist in the insolvency profession as well.
The move of bankruptcy to Treasury is at least a good move.
One Response
It is logical that both departments responsible for insolvency and relevant legislation be with the same Minister. Pity it has taken so long to be effected – perhaps under the influence of Australian equivalent of DOGE.