Published on 15 Sep 06
by SOUTH AUSTRALIAN DIVISION, THE TAX INSTITUTE
People have long sought to protect their personal and business assets by separating ownership from risk. However, the Government now seems committed to giving creditors greater access to assets (including superannuation) controlled by a bankrupt and their associates. The Government's proposals have brought into question the ongoing effectiveness of common asset protection strategies. This paper focusses on:
- the current bankruptcy rules and common asset protection strategies
- the content and current status of the Government's proposals
- the 2005 'Bankruptcy and family law' amendments
- the likely impact of the above on asset protection strategies going forward.
This paper was originally presented on 6 May 2006 at the South Australian State Convention held in the Barossa Valley. This version contains some update to cover changes that occurred since then.