Consumer advocates and financial counsellors have applauded Federal Parliament’s move to stop the Australian Financial Security Authority charging individuals a $120 to declare bankruptcy.
The fee, introduced in April, caused wide-spread concern among consumer advocates and financial counsellors who argued it would act as a roadblock for people seeking a fresh start. But a disallowance motion, introduced by The Greens, supported by Labor and not opposed by the Government, will see the fee scrapped.
Financial Counselling Australia, Consumer Action Law Centre, and Financial Rights Legal Centre thanked the Parliament and Government for listening to their concerns and the concerns of financial counsellors across the country.
It will help many financially vulnerable members of our community get a fresh start, and there will be flow on benefits to the business sector which won’t have to allocate resources to chasing unrecoverable debts.
Australians having trouble paying their bills or considering bankruptcy can speak to a free and independent financial counsellor by calling 1800 007 007.