The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

1.1.I.100 Insolvent

Definition

For the purposes of the PPL scheme a person is insolvent if, for a natural person, the person:

  • is an insolvent under administration (within the meaning of the Corporations Act 2001), or
  • the person is a debtor in relation to a debt agreement under the Bankruptcy Act 1966 Part IX that has not ended or been terminated, and
  • for a person that is or was a body corporate
    • the person is an externally-administered body corporate (within the meaning of the Corporations Act 2001) or an entity with a similar status under a law of a foreign country, or
    • a provisional liquidator has been appointed in relation to the person under section 472 of the Corporations Act 2001, or
    • a person with a similar status to a provisional liquidator has been appointed in relation to the person under a law of a foreign country.

Act reference: PPLAct section 6 The Dictionary

Corporations Act 2001

Bankruptcy Act 1966

Last reviewed: