Section 128E — Bankruptcy Act 1966: Superannuation account-freezing notice

Scope (1) This section applies in relation to a member of an eligible superannuation plan if the Official Receiver has reasonable grounds to believe that: (a) a transaction is void against the trustee of a bankrupt’s estate under section 128B or 128C; and (b) either: (i) the whole or a part of the member’s superannuation interest is attributable to the transaction; or (ii) the trustee of the bankrupt’s estate has made an application for a section 139ZU order that relates to the transaction and the member’s superannuation interest. Giving of freezing notice (2) The Official Receiver may, by written notice (a superannuation account-freezing notice) given to the trustee of the eligible superannuation plan, direct the trustee of the plan not to: (a) cash or debit; or (b) permit the cashing, debiting, roll-over, transfer or forfeiture of; the whole or any part of the superannuation interest except: (c) for the purposes of complying with a notice under section 139ZQ; or (d) for the purposes of complying with an order under section 139ZU; or (e) for the purposes of charging costs against, or debiting costs from, the superannuation interest; or (f) for the purposes of giving effect to a family law payment split; or (g) in accordance with the written consent of the Official Receiver given under section 128H; or (h) for the purposes of complying with an order under paragraph 128K(1)(b); or (i) for the purposes of complying with an order under subsection 139ZT(2); or (j) in such circumstances (if any) as are specified in the regulations. (3) The superannuation account-freezing notice must set out the facts and circumstances because of which the Official Receiver considers that the Official Receiver has reasonable grounds to believe that: (a) the transaction is void against the trustee of the bankrupt’s estate under section 128B or 128C; and (b) either: (i) the whole or a part of the member’s superannuation interest is attributable to the transaction; or (ii) the trustee of the bankrupt’s estate has made an application for a section 139ZU order that relates to the transaction and the member’s superannuation interest. When Official Receiver may give freezing notice (4) The Official Receiver may give the superannuation account-freezing notice: (a) if the Official Trustee is the trustee of the bankrupt’s estate—on the initiative of the Official Receiver; or (b) if a registered trustee is the trustee of the bankrupt’s estate—on application by the registered trustee. When freezing notice comes into force (5) The superannuation account-freezing notice comes into force when the notice is given to the trustee of the eligible superannuation plan.