Commonwealth Consolidated Acts

FAIR ENTITLEMENTS GUARANTEE ACT 2012 - SECT 30

    For the purposes of subsections   109(2) and (3) of the Bankruptcy Act 1966 , a payment of an advance for a person's employment by an employer that is made to the bankruptcy trustee of the employer under section   28 of this Act is to be treated as follows:

  (a)   so much of the advance as is for the person's wages entitlement is taken to be moneys advanced by the Commonwealth for the purpose of enabling a payment described in paragraph   109(1)(e) of the Bankruptcy Act 1966 ;

  (b)   so much of the advance as is for the person's annual leave entitlement or long service leave entitlement is taken to be moneys advanced by the Commonwealth for the purpose of enabling a payment described in paragraph   109(1)(g) of the Bankruptcy Act 1966 .

Note 1:   If, because of the advance, the person receives an amount on account of services rendered to the employer before the date of the bankruptcy or in respect of leave, subsections   109(2) and (3) of the Bankruptcy Act 1966 effectively give the Commonwealth the same rights in the bankruptcy as the person would have had for that amount if he or she had not received it.

Note 2:   Section   32 explains how to work out what amounts of the advance are for particular entitlements if the amount of the advance has been reduced under section   17 because of the person's debts to the employer.

Note 3:   Section   31 applies to so much of the advance as is for the person's payment in lieu of notice entitlement or redundancy pay entitlement.