Bankruptcy and Superannuation

Abstract

This paper will consider the interaction between bankruptcy law and superannuation funds at three different levels. The first issue is whether or not a bankrupt's interest in a superannuation fund is "property" capable of vesting in a trustee in bankruptcy. This involves consideration of the nature of a member's interest in a superannuation fund and also the validity of forfeiture provisions included in superannuation deeds. The second area which will be considered is the scope of the new specific exclusion of superannuation and similar investments from the operation of the Act. Finally, the paper will briefly consider the extent to which payments into or amendments to a superannuation fund could constitute antecedent transactions which could be set aside by a trustee in bankruptcy and the extent to which income from superannuation funds falls within Division 4B of Part 6 of the Bankruptcy Act.