Superannuation and Bankruptcy: Is There a Mid-Life Crisis Looming?
(2017) 17 QUT Law Review 114
14 Pages Posted: 1 Dec 2017
Date Written: November 28, 2017
Research suggests that Australian bankrupts are increasingly older, have professional backgrounds and generally enjoy higher levels of income than has previously been the case. Significantly, available data also indicates that the numbers of persons entering into bankruptcy hold greater levels of real property, and associated mortgage debt, than in previous decades. Given these trends, the importance of protecting superannuation funds becomes paramount to a bankrupt. However, this paper argues that there is a need to balance the protected asset status of superannuation funds with other objectives, such as achieving a fair distribution of the bankrupt’s assets among creditors. This paper examines the extent to which this balance is achieved, particularly in the context of self-managed superannuation funds.
Keywords: Superannuation, Bankruptcy
JEL Classification: K35, K23
Suggested Citation: Suggested Citation